Chelsea ‘loophole’ closed but Premier League club in danger of UEFA punishment

Chelsea have been handed a major financial update after a UEFA fine and warning with Aston Villa potentially facing more punishment

Football finance expert Kieran Maguire says that a financial ‘loophole’ used by Chelsea is now prohibited by the Premier League. The Blues and Aston Villa were both fined by UEFA at the start of the season for breaching its rules with the latter in danger of facing further punishment.

In an attempt to ease concerns, both clubs sold their women’s teams with Villa receiving £55m while Chelsea doing so allowed them to remain within Premier League financial constraints. The Blues reported a pre-tax profit of £128.4m in June 2024, which incorporated the £200m sale of the women’s side.

They also moved two hotels to an associated entity to comply with the league’s financial regulations. Villa and Everton have similarly employed this strategy in a bid to enhance their income streams.

Maguire has now revealed that Villa could face another fine and also provided some clarity regarding the Premier League’s stance on related-party transactions.

FOLLOW OUR CHELSEA FB PAGE! Latest Blues news, analysis and much more via our dedicated Facebook page

Speaking on The Overlap’s Fan Debate, he said: “There’s a chance that Villa could be in breach of the UEFA rules. Both Villa and Chelsea breached those rules at the start of the season and they’ve had to follow a very strict business plan.

“There’s a danger of Villa failing that again, which could mean they’ll get another fine, rather than a points deduction.

“Under the SCR (squad cost ratio), you cannot include sales of women teams, real estate and other unusual assets to yourself. So the Premier League has come more in line with the UEFA rules. Those sorts of issues were prohibited under UEFA rules, but they were allowed at the start of the season under the Premier League rules.

“Although it was a struggle to get that through. We’ve seen both Aston Villa and Everton both sell their women’s teams to themselves over the course of the last 12 months. It was within the rules, it’s perfectly acceptable.

While Chelsea look to have avoided further punishment Villa are facing a real threat. They were fined approximately £9.5million last year following a separate violation in 2024, after failing to meet the governing body’s requirements.

The club received a two-part sanction; the first amounting to £4.3m for surpassing the earnings threshold, and the second totalling £5.2m for failing to comply with UEFA’s squad cost regulation. Earlier this month, reports surfaced indicating that the Villa Park club were expected to fall foul of UEFA’s squad cost regulation once again.

The rule imposes financial penalties should a club’s spending on player wages, transfers and agents exceed 70 per cent of its revenue.

Ensure our latest sport headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as Preferred Source in your Google search settings

It is understood that Villa are not at risk of breaching their original settlement agreement reached last year, which would result in considerably harsher penalties.

Nevertheless, despite remaining compliant with the Premier League’s Profitability and Sustainability regulations, the club potentially face fresh punishment. Their income has decreased following the drop from Champions League to Europa League participation.