Chelsea and Aston Villa have been fined by UEFA for breaching the European governing body's financial rules. The two clubs could be prevented from registering new players for UEFA competitions in the forthcoming season unless they achieve a positive transfer balance by the end of the summer transfer window.

Financial Penalties

• Chelsea: Fined €31 million (£26.7 million) with a potential additional €60 million (£51.2 million) if they fail to comply within the next four years.
• Aston Villa: Fined €11 million (£9.5 million) with a further €15 million (£12.9 million) conditional on compliance over a three-year period.

Breach Details

The punishments are related to breaches of UEFA's football earnings rule and having a squad cost ratio— the proportion of income paid out in wages—above 80%. Chelsea is set to compete in the Champions League in 2025-26, while Aston Villa will participate in the Europa League.

Club Statements

Chelsea stated, "The club has worked closely and transparently with UEFA to provide a full and detailed breakdown of its financial reporting, which indicates that the financial performance of the club is on a strong upwards trajectory. Chelsea FC greatly values its relationship with UEFA and considered it important to bring this matter to a swift conclusion by entering into a settlement agreement."

Additional Sanctions

UEFA's Club Financial Control Body (CFCB) issued the punishments, stating that profits from the sale of tangible or intangible assets, player exchanges, and transfers between related parties cannot be included in submitted accounts.

Recent Financial Moves

• Chelsea: Reported a pre-tax profit of £128.4 million in June 2024, including the £200 million sale of the women's team to a separate entity within the club's parent company BlueCo. They also sold two hotels to a sister company to comply with the Premier League's Profit and Sustainability Rules (PSR).
• Aston Villa: Reports suggest they have agreed to sell their women's team to comply with PSR.

Transfer Activities

Chelsea has made transfers worth £150 million on five players this summer, while Aston Villa has yet to make a major signing.

Other Clubs Affected

• Barcelona: Fined €15 million (£13 million) for breaching UEFA's financial rules.
• Lyon: Sanctioned €12.5 million (£10.7 million) and agreed to be excluded from European competition if their appeal against relegation to Ligue 2 fails.

Impact on Crystal Palace

Crystal Palace's participation in next season's Europa League is in doubt due to potential breaches of multi-club ownership (MCO) rules related to American businessman John Textor's involvement at both Lyon and Crystal Palace.