Premier League investigating Chelsea over possible financial violations

LONDON – The English Premier League is investigating potential financial rule breaches at Chelsea under Roman Abramovich’s ownership, chief executive Richard Masters told Britain’s The Times newspaper on Wednesday.

Abramovich sold the club in 2022 to an investment group led by American businessman Todd Boehly and Clearlake Capital, after the Russian oligarch’s assets in Britain were frozen by the UK government following his country’s invasion of Ukraine.

Chelsea’s new owners have since self-reported a number of financial transactions during the Abramovich era to European football’s governing body Uefa, the Premier League and the Football Association (FA).

“We have been pretty open about the historic issues with regard to Chelsea because they self-reported to the Premier League and to the FA, so it is obvious we are looking into that,” Masters told The Times.

“If the Premier League believes a club has breached the financial regulations and there is a case to answer, that case will be put to the club.”

The Times reported that the inquiry encompasses multi-million-pound payments to six undisclosed offshore entities, with connections to football intermediaries, as well as at least one payment to a player’s family – potentially resulting in penalties such as a substantial fine or even a points deduction for the club.

Chelsea declined comment when approached by the newspaper.

“We want due process to be served in as efficient a way as possible, as quickly as possible,” Masters added.

“It is not always easy to do these things quickly but we want the right answer, positive or negative, whether clubs are found guilty of breaching rules or not.”

Uefa had reached a settlement in July with Chelsea over the submission of incomplete financial information, related to “historical transactions” between 2012-2019, with the London club paying a fine of €10 million (S$14.8 million).

The Premier League investigation, meanwhile, could involve questions for Chelsea’s former chairman Bruce Buck and director Marina Granovskaia, the two people who were mainly in charge of running the club during the later part of Abramovich’s ownership.

The Blues, who finished 12th in the Premier League following a chaotic campaign and have now appointed manager Mauricio Pochettino to steady the ship, will not be competing in Europe in 2023-24.

Chelsea are not the only Premier League club who are facing financial breaches in recent times.

In February, the English top flight accused champions Manchester City of breaking a total of 115 rules, including a failure to provide accurate financial information, not complying with Uefa’s financial fair play regulations and failing to follow the Premier League’s rules on profit and sustainability.

The charges alleged that the club broke the rules during a nine-year period from 2009 when they were taken over by their current Abu Dhabi owners.

At the time, City said they were “surprised” by the accusations and had a “comprehensive body of irrefutable evidence” to support their position. They had consistently denied any financial wrongdoing.

The Premier League has since referred the club to an independent commission, while manager Pep Guardiola has called for the financial charges to be settled “as soon as possible”.

If found guilty, City, like Chelsea, could potentially face fines, points deductions or even expulsion from the league, but it is expected to be a long-drawn process.

Legal experts say it could take two years or longer, according to The Times. In Chelsea’s case, in which the breaches took place under the previous ownership, the process is said to be much quicker.

In May, Everton were also referred to an independent commission by the Premier League over an alleged breach of financial fair play rules. The Toffees also denied wrongdoing. REUTERS, AFP