London: Chelsea and Aston Villa have faced substantial penalties from UEFA for violating financial sustainability regulations, as announced by European football's governing body. Chelsea has been fined £31 million ($36.5 million), while Aston Villa faces an £11 million penalty.
According to Ghana News Agency, Chelsea's penalties include a £20 million fine for non-compliance with UEFA's football earnings rule. Additionally, the club could face a further £60 million fine if compliance is not achieved within four years. Chelsea has also agreed to a restriction on registering new players on their List A for UEFA club competitions. Furthermore, the club has been fined £11 million for reporting a squad cost ratio exceeding 80% of its income in wages.
A spokesperson for Chelsea stated, "Chelsea FC has entered into a settlement agreement with UEFA concerning a break-even deficit reported by the club under UEFA's Financial Sustainability Regulations covering the financial years 2022-2023 and 2023-2024. The club has also agreed to pay a fine due to the squad cost ratio in the 2024 reporting year being between 80% and 90%. Chelsea has worked closely and transparently with UEFA, providing a full and detailed breakdown of its financial reporting, indicating a strong upward trajectory in financial performance."
Aston Villa has been ordered to pay £5 million, with an additional £15 million conditional on compliance over a three-year period, and £6 million for similar offenses. The penalties reflect the severity of the breaches, and Villa has also agreed to a similar restriction on player registrations. The PA news agency has contacted Villa for a statement.
The penalties were handed down by the first chamber of UEFA's club financial control body (CFCB) following an analysis of the 2023 and 2024 financial years. The CFCB emphasized the importance of assessing clubs' compliance with the football earnings rule, particularly in transactions involving the sale of tangible or intangible assets, player swaps, and transfers between related parties.
Both Chelsea and Villa have recently been in the spotlight for selling their women's teams to their parent companies to navigate spending restrictions. UEFA noted that both clubs reported a squad cost ratio "between 80% and 90%," with the limit set to decrease to 70% in 2025.
