Chelsea facing Premier League scrutiny over £76.3m hotel sales

Chelsea facing Premier League scrutiny over £76.3m hotel sales

Chelsea are facing scrutiny over a £76.3million deal by their owners to sell two hotels at Stamford Bridge to another company they own.

The club’s latest accounts showed the Millennium and Copthorne Hotels were transferred from Chelsea FC Holdings Ltd to Blueco 22 Properties Ltd, two companies that are subsidiaries of Chelsea’s holding company Blueco 22 Ltd.

The hotel deals appear to be a move to help Chelsea avoid Premier League profitability and sustainability (PSR) breaches.

Chelsea posted a pre-tax loss of £90.1million for 2022-23, following a pre-tax loss of £121.4m in 2021-22. Permitted losses under PSR rules must not exceed £105m over three years.

The hotel deals enabled Chelsea to claim the full £76.3m sum as income last season. The deal was allowed by the Premier League, but Chelsea’s accounts, filed to Companies House and made public last week, state that the deal had not yet been assessed to be of “fair market value” under Premier League rules.

If the Premier League rule the fair market value was lower than £76.3m, it could cause a PSR problem for Chelsea, given they appear close to the permitted £105m losses over three years.

Chelsea’s accounts stated club directors “obtained market values from two industry-leading property valuers” and the club believe them to be fair.

The Premier League and Chelsea declined to confirm if the fair market value assessment had been concluded since the accounts were signed off in December.

Chelsea co-owner Todd Boehly stated in the accounts that Chelsea expected to comply with PSR “in the foreseeable future”.