Earlier this week, The Times released a report detailing Chelsea Football Club’s latest financial statements, shedding light on a controversial accounting strategy used by the club’s American owners. Previously, the ownership had already faced criticism for selling club-owned hotels to affiliated entities—maneuvers seemingly aimed at staying within the Premier League’s Profit and Sustainability Rules (PSR).
These rules cap acceptable financial losses over a three-year period to ensure clubs remain financially stable.
Now, in the 2023/24 financial year, another questionable move has come to light.
Chelsea transferred the ownership of its women’s team—not to an external party, but to another company within its ownership group.
While the Chelsea Women’s team reportedly generated modest revenue—£11.5 million, up from £8.8 million the previous year—it also posted significant losses of £8.7 million, almost doubling from £4.2 million in 2022/23.
Despite these financial figures, the ownership valued the women’s side at a staggering £200 million during this internal sale.
This unusually high valuation enabled Chelsea to log a substantial profit for the season, thereby sidestepping a potential breach of PSR guidelines.
The Times reported on March 31, 2025, that Chelsea booked nearly £200 million in profit from the sale of the women’s team and other subsidiaries to its parent company, which significantly contributed to the club avoiding PSR sanctions.
The £198.7 million gain was mentioned on the club’s website, although the full financial breakdown was not immediately published.
According to reports, the women’s team alone was valued at more than £150 million as part of this transaction.
However, the Premier League has not yet confirmed whether this valuation meets fair market standards, leading to skepticism about how many third-party buyers would pay such a high price for a team that has yet to turn a profit and operates at a financial loss.
The transaction took place on June 28, just two days before the accounting cut-off date, with ownership transferred to BlueCo 22 Midco Ltd—a company under the same ownership umbrella as Chelsea.
If this valuation is accepted, it would make the Chelsea Women’s team the second most valuable women’s football club globally, behind only Angel City FC.
Alongside the women’s team transaction, Chelsea also generated £152.5 million from player sales.
Combined, these strategies allowed the club to declare a profit of £129.6 million, even as total revenue dropped from £512.5 million to £468.5 million due to missing out on Champions League qualification.
Still, underlying operating losses were estimated at £170 million.
Although the Premier League currently permits such intra-group sales to count toward revenue, UEFA does not—a discrepancy that may place Chelsea at risk of breaching European financial regulations.
The club defended the move, stating that transferring the women’s team would help provide more focused resources and management, aligning with their long-term vision for the women’s game.
