Chelsea faces the threat of a Champions League ban due to financial violations.

Chelsea faces the possibility of a ban from European football, including the Champions League, after violating UEFA’s financial regulations. The club has had a turbulent season but remains in contention for a Champions League spot, their first since 2022.

However, their significant spending in recent years could cause issues with UEFA, which doesn’t recognize certain accounting practices that helped the club avoid sanctions from the Premier League. Last summer, Chelsea reported a £198.7m profit from selling its women’s team to a sister company, a strategy also used in 2023 to raise £76.5m by selling two hotels.

While such transactions are allowed under Premier League rules, UEFA does not accept them. As a result, the £275.2m from these sales must be excluded from financial calculations, revealing a loss of £358m over the past three years, exceeding UEFA’s £170m loss limit.

Chelsea is reportedly negotiating with UEFA, with the likely outcome being a fine and a “sustainability plan” for future spending until 2028. The settlement details are expected to be made public next month. If the rules are breached again, the club could face even stricter penalties, including a European competition ban.

The Premier League also required Chelsea to reduce the value of the hotel deal by £6m, and similar adjustments may be made regarding the women’s team sale. Concerns remain about whether the £200m valuation is accurate given the club’s revenue and recent financial struggles.