Chelsea recently sold two hotels to a sister company for £76.5 million, a move that has been cleared by the Premier League. This transaction was crucial for Chelsea to comply with the division’s profit and sustainability rules (PSR). The sale of the Millennium and Copthorne hotels helped offset the club’s reported loss in the 2022-23 financial year, positioning them within the acceptable margin set by the league.
According to sources, the Premier League conducted an assessment of the sale to ensure it met the criteria of “fair market value” under the league’s associated-party transaction rules. This scrutiny was necessary, as both UEFA and the English Football League prohibit such sales. The completion of this process signifies that the deal between Chelsea and their sister company was in line with the league’s regulations.
Despite skepticism from some of Chelsea’s Premier League rivals regarding the validity of the sale, sources close to Clearlake Capital, the majority owner of Chelsea, have expressed confidence in the club’s ability to comply with the PSR rules. This assurance extends to previous seasons and the upcoming 2024-25 accounting period, reflecting Chelsea’s commitment to financial responsibility within the league.
The Premier League’s Annual General Meeting in June included a vote on whether to ban similar transactions to sister companies in the future. However, only 11 clubs supported the proposal, falling short of the 14 votes required for the rule to change. This outcome indicates a level of acceptance within the league regarding such transactions, provided they meet the necessary standards outlined by the PSR regulations.
Chelsea’s successful clearance by the Premier League for the £76.5 million hotel sale illustrates the club’s strategic financial management. By adhering to the league’s rules and regulations, Chelsea has reinforced its commitment to operating within the boundaries of financial sustainability. This development not only secures Chelsea’s position within the Premier League but also sets a precedent for compliance and transparency among other clubs in the division.