Chelsea cleared by Premier League after controversial £76.5m sale of two hotels to sister company

CHELSEA have been cleared by the Premier League following an investigation into the sale of two hotels to help them comply with profit and sustainability rules.

Company accounts in April showed that the Millennium and Copthorne hotels next to Stamford Bridge had been sold for £76.5million.

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Chelsea have been cleared following the sale of two hotels for £76.5m[/caption]

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The hotels changed hands to another company owned by Todd Boehly[/caption]

Clubs are allowed to lose up to £105m over a three-year period under PSR rules.

The sales of the hotels helped the Blues avoid a potential loss of £166.4m loss, instead reducing the figure to an allowable £89.9m for the financial year.

The hotels changed hands from Chelsea FC Holdings Ltd to BlueCo 22 Properties Ltd, both companies under the control of Todd Boehly and Clearlake Capital ownership.

However, the sales have now been ratified by the Premier League under a “fair market valuation” relating to the league’s associated-party transaction rule.

It is unclear whether the £76.5m figure has changed.

Chelsea maintained confidence that they were within compliance of PSR rules, with certain costs for infrastructure, academy and women’s football allowed to be deducted.

The Premier League could close this loophole in a future vote.

A vote in June on the topic only saw 11 clubs vote in favour of banning these types of transactions, with a minimum of 14 needed to pass a motion to change regulations.

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Such transactions are not allowed in Uefa competitions or the English Football League, who closed the loophole in 2021.

Leicester also escaped any punishment earlier this week after they won a landmark legal appeal against alleged PSR breaches.

An independent appeal board backed Leicester’s argument that the League did not have the right to charge them for losses in excess of the limit of £105m in the three seasons up to 2022-23.

It means the Foxes will now avoid the anticipated six-point penalty they had been facing – although they could be charged later in the season if they are in breach of the limit when the 2023-24 accounts are delivered to Prem chiefs.

Leicester’s claim – which was rejected by the initial independent commission which sat in March – was that the Prem could not sanction them when the club had become a member of the EFL following their relegation that season.

And in a shock ruling, the appeal board accepted that Leicester were not subject to Prem rules because the club’s accounting period ended on 30 June 2023, “after the point the club had ceased to be a member of the league”.

Furious Prem bosses issued a statement in which they said they were “surprised and disappointed” by the ruling.

Manchester City remain under investigation, though an independent disciplinary commission will begin ruling on the 115 financial charges against the club later this month. City deny the charges.