Chelsea have been cleared by the Premier League for the sale of two hotels to a sister company, ensuring the club remains compliant with profit and sustainability rules (PSR).
In April, the Blues revealed the sale of the Millennium and Copthorne hotels, located near Stamford Bridge, for £76.5 million in a bid to offset a potential £166.4 million loss, reducing it to an acceptable £89.9 million for the financial year.
The ownership of the hotels was transferred from Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd, both of which are controlled by Todd Boehly and Clearlake Capital. The Premier League ratified the sale under its ‘fair market valuation’ rules governing related-party transactions.
While it’s unclear if the £76.5 million valuation has been adjusted, Chelsea remains confident they are adhering to PSR rules, which allow clubs to deduct certain expenses, such as those related to infrastructure, academies, and women’s football, from the maximum allowable loss of £105 million over a three-year period.
Such transactions are prohibited in UEFA competitions, with Chelsea participating in the Conference League this season, and are also banned in the English Football League following a rule change in 2021.
However, the Premier League has not yet implemented a similar restriction, though it may be reconsidered in future votes.
An attempt to ban these types of transactions was made by Premier League clubs in June, but only 11 clubs supported the proposal—three short of the 14 votes required to amend the regulations.
Chelsea’s senior staff and the Clearlake Capital ownership are confident that the club will remain within financial compliance for the 2024-25 season, with further financial gains expected from participation in the Club World Cup next summer.