Premier League falls short in bid to close loophole which helped Chelsea satisfy PSR

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·4 Juni 2025

Premier League falls short in bid to close loophole which helped Chelsea satisfy PSR

The Blues dodged a financial violation in 2023 after selling two hotels to a company linked to their owners

chelsea were the first to benefit from the loophole

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Premier League clubs will still be able to sell assets such as hotels to related companies and include the revenue in their profitability and sustainability calculations next season after no vote was held to change the rules at a top-flight meeting on Wednesday.

Chelsea acted within league rules when they sold two hotels to a company linked to their owners in 2023 and included the revenue generated in their submission under the league's profitability and sustainability rules (PSR).

The London club also sold their women's team to a related company at a value of almost £200million last year, helping the club record a net profit of £129.6m for the year ended June 30, 2024.

That valuation was handed some credibility last month, though, as American tech mogul Alexis Ohanian bought a 10% stake in Chelsea Women for £20m.

League rules do state, however, that such associated party transactions must be done at fair market value.

The PA news agency understands the Premier League consulted with clubs on a proposal to hold a vote on a rule change in advance of the league's annual general meeting on Wednesday, which sought to have the sale of such fixed assets excluded from clubs' PSR calculations.

However, it is understood the proposal did not gain sufficient support to put it to a vote. Clubs knew heading into the meeting in Harrogate that there would be no vote.

Chelsea's hotel sales were cleared by the league, albeit with the value reduced to a restated £70.5m in their latest accounts, down from an original £76.5m. The valuation put on the women's team is still being assessed.

Top-flight clubs opted against changing the rules around the sale of fixed assets in 2021, at a time when the EFL brought in tougher rules for its clubs after some included revenue from the sale of assets such as stadiums in their financial sustainability calculations.

The issue came up again with Premier League clubs last summer but the existing rules were kept in place.

The sale of fixed assets cannot be included in revenue under UEFA's financial sustainability rules, and the Blues are understood to be in discussions with European football's governing body over a potential financial settlement.