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The Premier League is officially allowing Chelsea to use profits from selling two hotels to combat a potential breach of profit and sustainability rules (PSR). Chelsea recently offloaded the hotels and parking garages near Stamford Bridge for around $100 million. The buyers in the deal, however, are the same people in charge of the Premier League club.
Chelsea FC Holdings Limited was the previous owner of the two properties. The company officially operates and manages the West London team and its training facilities. The new owner of the hotels is BlueCo 22 Properties Limited. American billionaire Todd Boehly co-owns both this corporation and Chelsea. As a result, the properties essentially changed companies but remained under the same umbrella.
The deal’s approval allows the Blues to exploit a loophole in the PSR law. Premier League officials previously proposed an official vote on the issue during a meeting earlier in the summer. English top-flight teams, however, failed to block the loophole. For a rule change, two-thirds of the division’s teams had to vote on changing the law. Nevertheless, only 11 of the league’s 20 teams voted to pass the measure.
Chelsea finds creative ways to avoid potential PSR problems
By selling the hotels to themselves, Chelsea can put the $100 million directly towards their losses for the 2022/23 financial year. Without the generated funds, the Blues were reportedly looking at losses of $219 million during this timeframe. This figure would have been a massive mountain to climb in the club’s fight against breaching PSR.
Current Premier League rules state that teams cannot exceed $137 million in losses over three years. Chelsea previously posted losses of $148 million for the 2021/22 financial year alone. The Blues may still have issues even with the sale of the two properties. However, the club is confident that they will comply with the division’s financial rules.
With Boehly at the helm, Chelsea has…
Source link : https://worldsoccertalk.com/news/chelsea-may-avoid-psr-breach-with-100-million-hotels-deal/
Author : Chris Moore
Publish date : 2024-09-05 15:06:04
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