Chelsea’s victory in Sunday’s Carabao Cup final and securing a spot in next season’s UEFA Europa Conference League (UECL) play-offs could create various financial challenges for co-owner Todd Boehly.
According to football finance expert Kieran Maguire, the Blues might consider negotiating a one-year ban with European football’s governing body to minimize the damage.
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After two years of significant transfer expenditures, Chelsea finds themselves in a tight financial position.
In January, academy players Armando Broja and Ian Maatsen were made available for transfer as Boehly and Clearlake Capital sought to stabilize the club’s finances.
The Premier League’s Profit and Sustainability Rules (PSR) allow clubs to incur losses up to £105 million over three years.
However, if Chelsea defeats Liverpool at Wembley and secures automatic qualification for the UEFA Europa Conference League (UECL) play-off round, they must also adhere to UEFA’s financial regulations.
In contrast to the Premier League’s £105 million threshold over three years, UEFA imposes penalties on clubs participating in their competitions if they exceed £68.5 million in losses over a two-year period.
Football finance experts argue that given Chelsea’s recent expenditure, complying with these regulations could prove exceedingly difficult for the club.
Tying player bonuses to European qualification would exacerbate Chelsea’s financial woes. Additionally, there would be minimal incentive to strive for success off the pitch, considering West Ham only received a modest £16 million for winning the UEFA Europa Conference League last season.
AC Milan negotiated with UEFA in 2019 after violating Financial Fair Play (FFP) regulations, resulting in a one-year ban instead of a two-year ban. Football finance expert Maguire suggests that Chelsea might benefit from taking a similar approach.
“It could be in Chelsea’s interests to do the same as Milan,” he told The Athletic. “We’re moving into the realms of three-dimensional chess here, which some clubs are capable of playing.
“By the time you pay the players’ bonuses for qualifying for the competition, transport, accommodation and other costs, you’re only making a small amount of money from the Conference League. You’ll struggle to get a decent number of fans to attend Stamford Bridge if the opposition is modest. That isn’t a criticism of them. It’s modern-day economics.
“If they are exceeding the UEFA limits, the question becomes: ‘Do we want to go and play in the Conference League next season?’. Because they won’t make any money from it.”
