Chelsea could face more severe points deduction than Everton and Nottingham Forest if they're found to have broken English Premier League financial regulations, according to a financial expert Stefan Borson.
What happened?
Everton became a victim of points deduction, with the Premier League taking 10 points away from the Merseyside club in November 2023 for profit and sustainability rules (PSR) breaches.
The point deduction was reduced to six in February 2024, following an appeal by the Toffees, meanwhile, Nottingham Forest's points deduction also came down to PSR breaches on March 18.
Forest took a four-point setback that sent them tumbling into the relegation zone.
Since the new era started under the leadership of Todd Boehly in May 2022, the Blues have spent excess of 1 billion pounds on new players. But under the Premier League's profit and sustainability rules, teams are not allowed to record a loss of more than £105 million over three years.
Meanwhile, Stefan Borson believes Chelsea could be looking at a stronger punishment from the Premier League compared to Everton and Forest.
Chelsea have not faced any charges yet and could still make money back through the selling of big-earning players this summer, with the likes of Romelu Lukaku and Kepa Arrizabalaga on the sales list.
Stefan Borson has warned that Chelsea could be hit with a major points deduction if they are charged and found guilty of breaching the Premier League's financial rules.
Talking about Chelsea's possible points deduction, Borson said; "Possibly more severe than Forest and Everton".
"I think the scale of the losses they're currently forecasting, to me, appear to be vastly more than both Everton and Nottingham Forest".
The Financial Expert now believes Chelsea would need to flush out numerous first-team players before the FFP deadline on June 30.
Borson said; "There was an assumption with Mason Mount because he was announced on Manchester United’s website on July 1 that (his sale) had been put into this current season".
"So the £55 million of profit was in this season. It now transpires that Mason Mount appears to have been transacted in 2022/23 and that is how they got through (FFP rules)."
The interviewer, Simon Jordan said: "Which means they've now got a £55 million bigger hole this season."
Borson continued: "Correct because we also know from the BlueCo accounts that they are currently, from the post-balance sheet events, that they are something like £48 million in profit for this year".
He added; "But of course, this year from an operating perspective, is going to be even worse than last year because they’ve got no Champions League and no Europe at all".
When asked how Chelsea can financially cope without European football, Borson said: "Really, they have to find buyers for Trevoh Chalobah for £20 million, Armando Broja for £40 million, and Conor Gallagher for £50 million".
Reflecting on potential Chelsea exits, he said: "It’s those sorts of deals that need to be done. And by the way, they all need to be done by June 30. That, as we know, is articulated within the Forest decision".
"There’s a whole conversation about how hard it is to sell players in the period before June. The Premier League actually suggested that more or less that it was impossible".
Simon Jordan then reflected that by December next year, Chelsea won't be facing a charge from the Premier League for breaching Financial Fair Play unless there is a complete change in the rules or a complete re-rowing back from that point of view.
What happened?
Everton became a victim of points deduction, with the Premier League taking 10 points away from the Merseyside club in November 2023 for profit and sustainability rules (PSR) breaches.
The point deduction was reduced to six in February 2024, following an appeal by the Toffees, meanwhile, Nottingham Forest's points deduction also came down to PSR breaches on March 18.
Forest took a four-point setback that sent them tumbling into the relegation zone.
Since the new era started under the leadership of Todd Boehly in May 2022, the Blues have spent excess of 1 billion pounds on new players. But under the Premier League's profit and sustainability rules, teams are not allowed to record a loss of more than £105 million over three years.
Meanwhile, Stefan Borson believes Chelsea could be looking at a stronger punishment from the Premier League compared to Everton and Forest.
Chelsea have not faced any charges yet and could still make money back through the selling of big-earning players this summer, with the likes of Romelu Lukaku and Kepa Arrizabalaga on the sales list.
Stefan Borson has warned that Chelsea could be hit with a major points deduction if they are charged and found guilty of breaching the Premier League's financial rules.
Talking about Chelsea's possible points deduction, Borson said; "Possibly more severe than Forest and Everton".
"I think the scale of the losses they're currently forecasting, to me, appear to be vastly more than both Everton and Nottingham Forest".
The Financial Expert now believes Chelsea would need to flush out numerous first-team players before the FFP deadline on June 30.
Borson said; "There was an assumption with Mason Mount because he was announced on Manchester United’s website on July 1 that (his sale) had been put into this current season".
"So the £55 million of profit was in this season. It now transpires that Mason Mount appears to have been transacted in 2022/23 and that is how they got through (FFP rules)."
The interviewer, Simon Jordan said: "Which means they've now got a £55 million bigger hole this season."
Borson continued: "Correct because we also know from the BlueCo accounts that they are currently, from the post-balance sheet events, that they are something like £48 million in profit for this year".
He added; "But of course, this year from an operating perspective, is going to be even worse than last year because they’ve got no Champions League and no Europe at all".
When asked how Chelsea can financially cope without European football, Borson said: "Really, they have to find buyers for Trevoh Chalobah for £20 million, Armando Broja for £40 million, and Conor Gallagher for £50 million".
Reflecting on potential Chelsea exits, he said: "It’s those sorts of deals that need to be done. And by the way, they all need to be done by June 30. That, as we know, is articulated within the Forest decision".
"There’s a whole conversation about how hard it is to sell players in the period before June. The Premier League actually suggested that more or less that it was impossible".
Simon Jordan then reflected that by December next year, Chelsea won't be facing a charge from the Premier League for breaching Financial Fair Play unless there is a complete change in the rules or a complete re-rowing back from that point of view.