Breaking: Chelsea hit with huge fine as statement released

Chelsea have been punished by UEFA for failing to comply with the governing body's football earnings and squad cost rules. The Blues have been hit with a financial penalty after breaching financial sustainability rules in the year's ending 2023 and 2024.

Chelsea have agreed settlements with the First Chamber of the Club Financial Control Body (CFCB) which will see the club be put under the microscope for four years.

They have been slapped with an €80 million fine, €20m of which is unconditional, for breaching the football earnings rule and will be subject to a further restriction on the registration of new players on their List A for UEFA competitions such as the Champions League, Europa League and Conference League.

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As part of the sanction, Chelsea agreed to reach annual targets and to the application of conditional financial and sporting measures if they do not remain out of the red. Should they fail to do so, it will result in striction sanctions such as player registration and exclusion from the next UEFA competition if they qualify.

Chelsea were also found to have breached the squad cost rule having reported a ratio above 80 percent and were imposed an unconditional fine of €11m.

Chelsea did not comply with the stability requirements as set out in UEFA's club licensing and financial sustainability regulations.

Proceedings were first opened against the Blues in September 2024 and the CFCB places particular attention on transactions involving sale of tangible and intangible assets, the exchange of players and transfers between related parties - requiring specific adjustments to the financial result.

The settlement period will cover four reporting periods between 2025 and 2028, as well as the forthcoming sporting season until 2028/29.

In agreeing with the CFCB, Chelsea have committed to a series of targets set out from the body including a maximum football earning deficit, equivalent to the projected deficit submitted in the business plan for the period ending in 2025.

For the 2026/27 season, their maximum deifict will be €5m, a season later it will be €0 and by 2028/29, the club will comply with the stability requirements and have an aggregate football earnings deficit or surplus that is within the acceptable deviation with regard to the reporting periods 2026, 2027 and 2028.

Should Chelsea exceed the targets in 2025 to 2027, they will be hit with a €20m fine.

The target in 2026 can be increased up to a maximum €60m, if there is an increase covered by contribution or equity in the reporting period ending in 2026.

Likewise in 2027, it can be increased in the event it overperforms in regard to the 2026 target but the sum of the 2026 and 2027 target cannot exceed an aggregate football earnings deficit of €60m.

Enzo Maresca's side were not the only club to be slapped with sanctions from UEFA with Barcelona, Lyon, Aston Villa and Croatian side Hadjuk Split landing themselves in hot water with European football's governing body.

Villa will be under the microscope for the next three seasons, as opposed to Chelsea's four, with an unconditional fine of €5m alongside their €20million fine.