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Chelsea hit with staggering £78.5m fine after breaking FFP rules amid loophole fallout

Chelsea have been hit with a £78.5m fine after being found guilty of breaching UEFA's Financial Fair Play rules - the Premier League club were also punished by the governing body for the same offence in January

A corner flag at Chelsea's Stamford Bridge stadium

A corner flag at Chelsea's Stamford Bridge stadium

(Image: Ryan Pierse/Getty Images)

Chelsea have been dealt a hefty £78.5m blow for violating UEFA's stringent financial regulations.

The Blues have been slapped with a £69m penalty - with £51m suspended - by UEFA's First Chamber committee for infringing football earnings rules. Additionally, they've incurred a £9.5m fine for breaching squad cost regulations which stipulate that no more than 80 per cent can be spent on players, contracts and agent fees.

This ranks as one of UEFA's most severe sanctions - potentially the harshest if the suspension on fines is lifted due to further violations - and could also result in Chelsea facing restrictions on registering new players for next season's Champions League.

UEFA's FFP rules are distinct - and more rigorous regarding these matters - compared to the Premier League Profit and Sustainability Rules, meaning Chelsea were not in violation of the latter.

In their judgement on the football earnings rule, UEFA stated: "In assessing the clubs' compliance with the football earnings rule, the CFCB placed particular attention on transactions involving the sale of tangible or intangible assets, the exchange of players (so called "swaps") and the transfers of players between related parties."

In response, Chelsea issued a statement: "The club has worked closely and transparently with UEFA to provide a full and detailed breakdown of its financial reporting, which indicates that the financial performance of the Club is on a strong upwards trajectory.

"Chelsea FC greatly values its relationship with UEFA and considered it important to bring this matter to a swift conclusion by entering into a settlement agreement."

They have effectively got four years to come into compliance, hence the main part of the sanction being suspended.

Fellow Premier League club Aston Villa has been dealt a £9.5m fine, with potential for an additional £15m in penalties should there be further infringements in the future.

Villa finds itself facing financial repercussions in two stages due to not meeting UEFA's standards. The initial fine is set at £4.3m for earnings violations, followed by a £5.2m charge related to squad cost regulation breaches.

In a recent move to avoid intensified punishment, Villa parted with their women's team, transferring ownership to a connected enterprise—a strategic loophole once exploited by Chelsea and one that Premier League teams have now chosen to seal off in voting.

Additional notable clubs including Barcelona, Lyon, and Roma find themselves under the scrutiny of the European football authority as they too face sanctions.

Newcastle's return to the Champions League for the 2025/26 season will see them be assessed by UEFA over the same financial rules as Villa and Chelsea. It will be the club’s first involvement in the competition in the new 36-team format and could see them increase their revenues substantially.

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