Chelsea are locked in crucial talks with league officials regarding potential penalties, including a points deduction. The controversy centres on concealed payments linked to the transfers of Eden Hazard, Willian, and Samuel Eto'o between 2012 and 2013.
Current owners Todd Boehly and Clearlake Capital discovered these financial irregularities during their 2022 club acquisition, triggering a thorough probe into the Roman Abramovich era's financial activities.
The Guardian's 2023 investigation exposed previously unknown financial activities in Chelsea's transfer dealings. The probe specifically examines Hazard's £32 million transfer from Lille in 2012, alongside Samuel Eto'o and Willian's moves from Anzhi Makhachkala in 2013. Financial documents reveal questionable payments to organisations in Russia and the British Virgin Islands, which were not included in Chelsea's official transfer reports.
These financial arrangements appeared designed to bypass Financial Fair Play (FFP) rules, with the hidden payments absent from the club's official records. Reports indicate that one of Antonio Conte's associates benefited from these undisclosed transactions. Both Eto'o and Willian's transfers involved Anzhi Makhachkala, a club owned by Russian oligarch Suleyman Kerimov, known for his substantial investments in football talent.
Chelsea's defence and negotiations
The current Chelsea leadership maintains that these financial irregularities occurred during Abramovich's ownership period. Upon discovering the hidden payments, Boehly and Clearlake Capital promptly informed the Premier League, UEFA, and the FA. This proactive approach aims to reach a swift resolution and avoid sporting penalties.
The ongoing discussions focus on reaching a financial settlement, similar to the £8.6 million fine UEFA imposed on Chelsea in July 2023 for related violations. Sources close to the negotiations express optimism about avoiding severe sporting sanctions. Both parties aim to conclude the matter before March 2025.
The points deduction discussion has sparked comparisons with Everton and Nottingham Forest's recent sanctions for breaking Premier League Profitability and Sustainability Rules (PSR). However, Chelsea's case differs as the new owners themselves uncovered and reported the irregularities. This approach has garnered understanding and sympathy from other Premier League clubs.
The new ownership team has established a £150 million reserve fund to address potential fines related to past misconduct. They also emphasise their current compliance with PSR guidelines. The club remains optimistic about reaching a financial settlement without impacting their league position.
While negotiations continue, both Chelsea and Premier League officials have limited their public comments on the matter.