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Chelsea will avoid breaking the Premier League‘s profit and sustainability rules (PSR) due to a loophole in the law. All English top-flight teams have to adhere to the financial regulations or risk possible penalties. PSR limits clubs from recording losses exceeding $134 million over three years. Everton and Nottingham Forest have both been charged and docked points for breaking these laws.
It was recently reported that the Blues were at serious risk of breaching this law. As a result, the club would have been forced to sell a key player or two by the end of the month. Midfielder Conor Gallagher and Trevoh Chalobah were two homegrown players supposedly on the chopping block.
Nevertheless, the Premier League has now failed to close the loophole that Chelsea has been exploiting. The specific ambiguity in the law allows teams to use profits from the sale of hotels or training grounds directly towards their financial reports.
Premier League fails in vote to block financial loophole
According to The Athletic, league officials proposed an official vote on the issue at a recent meeting. English top-flight teams, however, failed to block the loophole. Only 11 of the Premier League’s 20 teams voted to pass the measure. For the change, two-thirds of the division’s clubs had to back the league’s alteration.
The English Football League (EFL) successfully closed the particular loophole back in 2021. This move came after a handful of English teams sold their training grounds to avoid dealing with PSR penalties. The EFL consists of clubs currently in the second, third, and fourth tier of English soccer.
Chelsea, through their co-owner Toddy Boehly, recently sold two hotels and their parking garages near Stamford Bridge. The American ‘sold’ the properties to a sister company already involved in the west London club. The deal was reportedly worth around $98 million. In turn, the created funds directly helped Chelsea lower their deficit to about…
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Author : Chris Moore
Publish date : 2024-06-07 15:36:08
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