A financial expert has warned that the vast reserve of money Chelsea have put aside to combat any punishment from the Football Association could indicate that the Blues will be subjected to a sporting penalty as well as a fine.
Chelsea were charged with 74 breaches of various rules related to agents and third-partner ownership involved in historic transfers back in September. These complex indiscretions are thought to revolve around mysterious payments involving deals for Eden Hazard, Willian and Samuel Eto’o, which were exclusively conducted during Roman Abramovich’s tenure of Chelsea owner.
The club’s current BlueCo ownership group reported themselves to English football’s governing body upon the completion of their £2.5 billion ($3.3 billion) acquisition in May 2022. It was reported at the time that BlueCo put a proportion of their purchase fee to one side as a “holdback amount” with the express purpose of covering any fines for offences committed under Abramovich.
Fordstam Limited, the company which handled a sale forced by U.K. sanctions against Abramovich due to his alleged links to Russian president Vladimir Putin, confirmed this week that the “holdback amount” was worth £150 million and would be available until 2027.
However, the most telling line from Fordstam’s accounts wrote off ever banking the £150 million due to “doubts about its recoverability.”
This acceptance was one tip off while the swollen size of the withheld fee also raised eyebrows. Chelsea had been expected to receive a fine of no more than £100 million. “There’s a question mark there as to why the size of the provision is so big,” football finance expert and lawyer Stefan Borson told The Guardian.
“The holdback amount will not just indemnify any financial penalty from a fine. It may also cover claims for consequential losses from any sporting sanctions, such as a loss of a European place or [Premier League] merit payments.”
Swiftly after Chelsea received the FA’s 74 charges, it was widely circulated that the Blues expected to avoid any sporting sanction in favour of an economic penalty because they had reported themselves to the authorities. However, there are now increased concerns that Enzo Maresca’s side could face a points deduction or a transfer ban.
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This article was originally published on www.si.com as Chelsea ‘More Likely’ to Face Points Deduction After Financial Revelation.