Chelsea are under scrutiny over a £76.3 million deal by their owners to sell two hotels at Stamford Bridge to another company they own.
The club’s latest accounts show that the Millennium and Copthorne hotels have been transferred from Chelsea FC Holdings Ltd to Blueco 22 Properties Ltd, two companies which are subsidiaries of Chelsea’s holding company Blueco 22 Ltd.
With the hotel contracts, Chelsea apparently wants to avoid violations of the Premier League’s profitability and sustainability regulations (PSR).
Chelsea recorded a pre-tax loss of £90.1 million for the 2022/23 season, following a pre-tax loss of £121.4 million in the 2021/22 season. Allowable losses under the PSR rules cannot exceed £105 million over a three-year period.
The hotel contracts allowed Chelsea to claim the full £76.3million as revenue last season. The deal was approved by the Premier League, but Chelsea’s accounts, filed with the Companies House and published last week, say the deal has not yet been deemed to represent “fair market value” under Premier League rules.
If the Premier League determines the fair market value to be below £76.3m, that could pose a PSR problem for Chelsea as they appear to be close to the allowable £105m loss over three years.
Chelsea’s reports state that the club’s directors have “obtained market values from two industry-leading property valuers” and that the club believes these to be fair.
The Premier League and Chelsea would not confirm whether the fair market value assessment had been completed since the accounts were signed in December.
Todd Boehly, co-owner of Chelsea FC, stated in the financial statements that Chelsea expects to comply with the PSR “in the foreseeable future”.
