The Premier League has cleared the sale of two Chelsea hotels for £76.5 million ($101 million) to a sister company in a deal that helps them meet the division's profit and sustainability rules (PSR), sources told ESPN.
In the club's accounts for the 2022-23 financial year published in April, it was revealed that the west London club made a loss of £89.9m, but that figure would have been £166.4m had they not sold the Millennium and Copthorne hotels adjacent to Stamford Bridge.
The deal meant that the two properties changed ownership from Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd. Both companies are subsidiaries of Chelsea's holding company, BlueCo 22 Ltd.
While UEFA and the English Football League prohibit such sales, the Premier League allows them to be made subject to an assessment of their “fair market value” under the league's rules on transactions between associated parties.
ESPN can reveal that sources say this process has now been completed and the deals were found to be within an acceptable range relative to estimates of the hotels' valuation had they been sold to another bidder.
Reports suggested some of Chelsea's Premier League rivals were sceptical about the validity of the sales and any complications could have led to fresh questions about the club's dealings as well as its ability to comply with PSR rules.
Under the PSR, clubs can make a maximum of £105m in losses over a three-year period. Certain costs, such as infrastructure costs and investment in women's football, can be deducted.
A source close to Chelsea's majority owner Clearlake Capital told ESPN that the club is confident of complying with the rules both in previous seasons and in the 2024-25 accounting period.
The Premier League voted at its annual general meeting in June on whether to ban such transactions with sister companies, but sources told ESPN that only 11 clubs supported the proposal. A minimum of 14 votes was needed for the rule to change.
