Chelsea hit with fine and suspended transfer ban over secret payments breaching PL rules

Chelsea F.C. have been fined £10.75 million and handed a one-year transfer ban suspended for two years after breaching Premier League regulations relating to payments to agents.

The club has also received an immediate nine-month ban on registering academy players following its voluntary disclosure of historical rule violations.

Premier League authorities confirmed the sanctions on Monday after completing a disciplinary investigation into the London club.

Chelsea had initially self-reported the potential breaches in 2022, prompting a formal inquiry and subsequent charges by the Football Association in September.

An independent commission concluded that the club had violated regulations concerning financial reporting, third-party investment, and youth development.

The investigation found that between 2011 and 2018, undisclosed payments linked to third parties associated with the club were made to players, unregistered agents, and other individuals. These payments were not reported to football regulatory authorities at the time, including the Premier League.

According to the league, the payments were made for the benefit of Chelsea and should have been recorded as club expenditures.

The failure to disclose them was therefore considered a breach of the league’s requirement for clubs to act in good faith.

As part of the sanctions, Chelsea must pay the £10.75 million fine, which is now the largest financial penalty in Premier League history, surpassing the previous record of £5.5 million imposed on West Ham United F.C. in 2007.

In addition to the fine, the club has accepted a one-year ban on signing first-team players, though this punishment will only take effect if further breaches occur within the next two years.

The club has also been prohibited from registering academy players from Premier League and EFL clubs for nine months, although the restriction does not affect current academy members.

The Premier League noted that Chelsea’s proactive self-reporting, admissions of wrongdoing, and full cooperation during the investigation were significant mitigating factors when determining the sanctions. It is also believed that several breaches may not have come to light without the club’s voluntary disclosure.

Despite the violations, the league confirmed that Chelsea did not breach the Profitability and Sustainability Rules (PSR) after recalculating the club’s historical financial submissions to include the undisclosed payments.

The incidents in question occurred more than a decade ago under the club’s previous ownership led by Roman Abramovich. Chelsea’s current owners argued during the proceedings that responsibility lay with the previous regime.

Separately, the Premier League also investigated breaches of youth development regulations related to the registration of academy players between 2019 and 2022, which involved actions by a former senior employee.

Chelsea have also previously reported the historical breaches to UEFA, resulting in a settlement that required the club to pay €10 million (£8.6 million).