Chelsea Football Club are being investigated by the Premier League for a potential violation of financial regulations.
The inquiry is reportedly connected to the club’s alleged use of third-party funding to support its academy.
The Premier League prohibits clubs from utilizing external financing to develop young players as it may lead to an unfair advantage in the transfer market. The regulations are intended to guarantee that all clubs have an equal chance to nurture their own players.
If Chelsea FC are found guilty of violating these rules, they could be subjected to a variety of sanctions including fines and transfer bans. The club has a history of breaking financial regulations, having been barred from signing young players for two transfer windows in 2019.
Chelsea have not yet commented on the matter, but the Premier League has confirmed that it is examining the alleged infraction.
“We can confirm that we are investigating a possible violation of the Premier League’s financial rules,” said a spokesperson for the Premier League.
Premier League permits a maximum of £105m loss over a three-year period, however, Chelsea FC recorded a loss greater than this figure in the 2020-21 season alone.
Furthermore, their struggles in the league means Champions League football next season is unlikely and hence, they could lose another major source of revenue.
