Chelsea risk European sanctions after financial ruling used by Todd Boehly rejected by UEFA

Chelsea are at risk of being banned from European competitions due to new financial regulations.

The Blues face the challenge of complying with UEFA's financial rules after the European governing body confirmed its stance on revenue recording.

According The timesUEFA will not allow clubs to record profits from the sale of assets to sister companies.

This is a co-owner making a loophole Todd Boehly and Clearlake have used to have sold two of ChelseaThe company's hotels to a sister company for £76.5m.

Meanwhile, the women's team was sold to the club's parent company two days before the end of the financial year in June.

The Premier League has yet to close these loopholes, meaning Chelsea have been allowed to record the sales as recorded revenue.

But UEFA will take a tougher stance, something that could cause problems for Chelsea in the future.

This loophole is banned by the English Football League for clubs in the Championship, League One and League Two.

It is understood that any sanction or settlement for breaching UEFA financial rules would not affect Chelsea's participation in this season's Conference League.

However, if Chelsea fail to comply, they could be banned from European football next season.

Exclusion from UEFA competitions is one of the possible punishments, along with financial and other sanctions.

UEFA stressed, however, that all cases would have to be assessed individually by its independent panel.

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UEFA's financial regulations are already stricter than those of the Premier League.

The Premier League's profit and sustainability rules allow clubs to lose a maximum of £105m over a rolling three-year period.

But UEFA's “football profits” rule means clubs can lose only £34.5m over two seasons.

Publishing his latest accounts in April, Boehly reaffirmed that Chelsea were in a position to adhere to UEFA rules to quell any rumours of trouble.

That's despite spending almost £1.2bn on transfers since arriving in May 2022.

That includes another Big summer of transfer business in which blockbuster deals to sign Pedro Neto, João Félix and Kiernan Dewsbury-Hall were offset by key departures of Conor Gallagher and Ian Maatsen to Atletico Madrid and Aston Villa respectively.