Stefan Borson: Chelsea could land devastating points deduction amid '£700m' reveal
Yesterday at 03:30 PM
Chelsea could have breached the profit and sustainability rules (PSR) after their operating losses have been close to £700million over the past three years.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider that is an "enormous" amount of money after the west London club’s financial situation has been firmly in the spotlight recently.
Chelsea's latest published accounts revealed they sold two Stamford Bridge hotels to BlueCo 22 Limited – their immediate parent company – in 2023 for a total of £76.5million.
That meant their losses fell from potentially as high as £166.4million to £89.9million for the 2022-23 financial year alone.
The London giants are expected to have been close to the spending limit again last season, with the PSR rules stating top-flight clubs can lose a maximum of £105million over a rolling three-year period.
In a further attempt to offset their major losses, Chelsea sold their women's team to BlueCo in June last year in a deal believed to be worth in excess of £150million.
The Premier League will hand out charges to any clubs who have committed a spending breach next week after they submitted their accounts in December.
Chelsea could have breached PSR rules despite off-field deals
Borson revealed it is possible Chelsea could have breached the rules despite their off-field deals.
He told Football Insider: "My model and Swiss Ramble's model are not overly dissimilar.
"Both of them would say they need over £150million of profit from non-football assets being traded, so that can be the women's team, more property or something completely different.
"It could be something that we haven't seen. Or maybe they have failed PSR. That is also possible.
"Certainly, at an operating level over the last three years, the club has lost something like £675million, maybe £700million. That is an enormous amount of money. You are allowed to lose £105million.
"But then you add back the allowances, so community, depreciation, the women's team, all of that gets added back. You can add back all of the player-trading profits. Chelsea have had huge player-trading profits over those three years.
"Then you add back the hotel, probably the sale of the women's team, and other bits of property they have sold. We don't know what those things are yet. We know what the hotel was, although I think the hotel number seems to have been trimmed a little bit.
"That's my understanding that when it was approved, it got trimmed, so they didn't make £77million profit, it was £75million or something like that. But we don't know about the other bits.
"If they don't fail, we won't find out specifically what they have sold until the accounts come out, probably in the first week of April.
"But we will start to be able to piece together some of the stuff when the Deloitte report comes out on revenue and wage costs, which are the two big numbers in any football club model."
In other news, Nicolas Jackson issues three-word statement to Chelsea fans.
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