Chelsea Faces FA Charges for Financial Irregularities
Chelsea FC is in the eye of the storm after being accused by the Football Association (FA) of England of 74 breaches of its regulations. These accusations are related to agents, intermediaries, and third-party investments in players.
The acquisition of the club by the consortium led by Todd Boehly and Clearlake Capital in May 2022, uncovered accounting discrepancies inherited from Roman Abramovich’s management.
The imputations cover the period between 2009 and 2022, with special emphasis on the years 2010 to 2016. Chelsea has until September 19 to respond to the accusations.
According to sources close to the club, a financial sanction is expected instead of a possible deduction of points or any other sporting measure.
In July 2023, Chelsea agreed to pay UEFA 10 million euros after acknowledging “incomplete financial reporting” during the Abramovich era.
The Football Association has today charged Chelsea FC with breaches of FA Regulations J1 and C2 of the FA Agents Regulations, Regulations A2 and A3 of the FA Regulations on Working with Intermediaries and Regulations A1 and B3 of the FA on Third Party Investment in Players.
FA Statement
The deadline of September 19 could be extended if necessary.
It is anticipated that the club will not contest the charges, which will be evaluated by an independent regulatory commission.The club issued a statement following the confirmation of the accusations by the FA.
The Chelsea FC statement indicates that the club is pleased that its collaboration with the FA on the matters that the club itself reported is coming to a conclusion.
The club’s new owner completed their acquisition on May 30, 2022. During the due diligence process prior to the purchase, potential incomplete financial reports and other possible breaches of FA rules were detected.
The club self-reported these matters to all relevant regulators, including the FA. Chelsea has demonstrated unprecedented transparency during this process, providing full access to the club’s historical files and data.
The club will continue to collaborate with the FA to conclude this matter as quickly as possible. The club thanks the FA for its collaboration in this complex case, which focuses on matters that occurred more than a decade ago.
Among the specific rules that Chelsea allegedly violated is the prohibition that “a club, player, intermediary or other participant manipulates matters to hide or misrepresent the reality and/or substance of any matter related to a transaction or contractual negotiation”.
The J1 Rule states that: “A club must not, at any time, use the services, directly or indirectly, of an Unauthorized Agent in relation to any Agency Activity. A club must not, directly or indirectly, make any payment to any Unauthorized Agent with respect to any Agency Activity.”
