Chelsea have officially announced a pre-tax profit of £128.4 million for the financial year ending June 30, 2024, marking a significant turnaround from previous financial results. This impressive profit is largely attributed to the restructuring of ownership concerning their women’s team, Chelsea FC Women Ltd.

The club executed a strategic transfer of ownership of Chelsea FC Women Ltd to its parent company, BlueCo 22 Midco Ltd, in what experts suggest was a move aimed at ensuring compliance with the Premier League’s Profit and Sustainability Rules (PSR). By shifting the ownership structure, Chelsea reportedly gained financial flexibility that prevented them from breaching PSR regulations, a crucial factor given the league’s strict financial oversight.

The valuation of the women’s team was estimated at over £150 million, and this transaction is believed to have played a pivotal role in the club’s ability to report a substantial profit. However, while this restructuring aligns with Premier League financial regulations, concerns have been raised about potential conflicts with UEFA’s financial guidelines.

UEFA, the governing body overseeing European competitions, has stricter financial rules, which do not permit clubs to register revenue from asset sales to affiliated companies as part of their financial fair play calculations. This raises questions about whether Chelsea’s financial maneuver could lead to repercussions in European competitions, potentially putting the club under UEFA’s scrutiny.

In addition to reporting a profit, Chelsea disclosed that their overall revenue for the financial year fell to £468.5 million, a notable decline attributed to the men’s team missing out on Champions League qualification. The absence from Europe’s top club competition significantly impacted broadcasting and match-day revenue, contributing to the lower total revenue figure.

Despite this decline, Chelsea saw a rise in commercial revenue, reaching £225.3 million. This increase was driven by multiple factors, including higher earnings from player loan fees, merchandise sales, and expanded stadium activities. The club’s ability to leverage its brand commercially has played an important role in maintaining financial stability despite setbacks on the pitch.

While Chelsea’s latest financial report presents an optimistic picture from a domestic financial compliance perspective, the potential UEFA scrutiny means the club may still face challenges in the near future. Observers and financial analysts will be closely watching how both Premier League and UEFA authorities respond to Chelsea’s financial tactics in the coming months.