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<p><a target="_blank" href="https://gistreel.com/tag/chelsea"><strong>Chelsea</strong></a> are facing possible fines and a ban from European competitions after UEFA rejected their attempt to offset financial losses.</p>
<p>This comes after the club included the <strong>£200 million sale of their women’s team to a sister company, BlueCo</strong>, as legitimate income.</p>
<p>The sale, alongside two hotels, helped Chelsea stay within the Premier League’s profit and sustainability limits, avoiding domestic sanctions despite over £1 billion spent under co-owner Todd Boehly.</p>
<p>But UEFA has refused to recognize the transaction, citing rules that exclude intra-company asset transfers from permissible revenue.</p>
<p>As it stands, Chelsea’s three-year losses total £358 million, well beyond UEFA’s allowable threshold of €200 million (£170m).</p>
<p>The governing body has now entered negotiations with the club, which could result in a settlement payment and a mandatory three-year spending plan.</p>
<p>Failure to comply could trigger a one-season ban from European competition.</p>
<p>The outcome of UEFA’s deliberation is expected in May.</p>
<p>Compounding Chelsea’s financial strain is UEFA’s updated cost control regulation.</p>
<p>The current cap that allows clubs to spend 80% of revenue on transfers, wages, and agent fees will drop to 70% from next season, tightening the screws further.</p>
<p>Chelsea will need to make significant structural and operational adjustments to avoid severe penalties.</p>
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