Chelsea have been hit with record fines totalling £10.75million after breaking transfer rules during the Roman Abramovich era – including to help sign heroes such as Eden Hazard.
And the Blues have also been slapped with a nine-month academy transfer ban and a suspended year-long first-team transfer ban.
That means that Chelsea are free to sign first-team stars as usual provided they do not commit another breach in the next two years.
The Premier League has dished out the punishment after finding that illicit payments were doled out to players, unregistered agents and others between 2011 and 2018. Chelsea were initially charged with 74 breaches in September.
Chelsea’s charges are mainly focused on transfers carried out between the 2010-11 and 2015-16 seasons – including deals for major stars such as Hazard, Samuel Eto’o, Willian, David Luiz, Andre Schurrle, Ramires, and Nemanja Matic.
In 2022, the club self-reported potential historical rule breaches and the Premier League has now completed two separate disciplinary processes.
The crackdown on Chelsea has left many wondering when Manchester City will face a verdict after being smacked with 115 charges in 2023 for alleged breaches of financial rules.
Chelsea have been hit with a £10.75million fine aftter breaking transfer rules during the Roman Abramovich era (pictured: Abramovich with John Terry in 2017)
Chelsea broke rules during transfers for major stars such as Eden Hazard, who joined in 2012
The club self-reported in 2022. They have also been hit with a nine-month academy transfer ban and a suspended first-team transfer ban
Chelsea’s fine is thought to be more expensive than the highest annual salaries they dish out to Reece James and Wesley Fofana, as per Capology.
The fine also smashes the previous record set by West Ham, who were hit for 5.5m back in 2007 after breaching rules when signing Carlos Tevez and Javier Mascherano.
A points deduction was one of the punishments available to the Football Association but that action has not been taken.
Their transfer ban has been suspended for two years and, if it is ever activated, would last for 12 months.
The Blues said in a statement: ‘Chelsea Football Club is pleased to confirm that the club has reached a settlement with the Premier League in relation to historical regulatory matters that were self-reported by the club in 2022.
‘As previously announced, the club voluntarily and proactively disclosed to all applicable regulators potential historical rule breaches, including incomplete financial reporting that took place over a decade ago.
‘During an extensive Premier League investigation, the club proactively disclosed many thousands of documents. Also, when requests for information were made by the Premier League, the club promptly provided comprehensive responses and facilitated all lines of inquiry to support a complex and extremely thorough process.
‘Furthermore, during the investigation, additional evidence was provided to the club by a third party regarding potential breaches of Premier League rules committed by a former employee in a small number of historical academy transactions. This information was immediately and proactively self-reported to the Premier League.’
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Chelsea also committed breaches in signing players such as Samuel Eto’o (above), Willian, and Nemanja Matic
Between 2011 and 2018, third parties associated with Chelsea made undisclosed payments to footballers, agents, and others individuals.
The club did not disclose these payments to the Premier League or any of football’s regulatory authorities.
Those payments directly benefited Chelsea and the club have accepted that they did not act in good faith towards the Premier League.
However, the Premier League acknowledged that Chelsea self-reported these infringements in 2022 and have provided ‘exceptional cooperation’ throughout the investigation.
As for the academy, the Premier League also investigated potential breaches of Youth Development Rules.
They were committed by a former senior employee and related to the club’s registration of Academy players between 2019 and 2022.
Chelsea’s academy transfer ban only pertains to youth players who have previously at another Premier League or English Football League club’s academy. It also does not prevent them from signing-up first-time players, for example a child joining their set-up aged nine.
A Premier League statement today read: ‘The Premier League has concluded two separate disciplinary processes involving Chelsea Football Club, following the club voluntarily self-reporting potential historical breaches of rules.
‘Two sanction agreements have been ratified by an independent commission under which Chelsea FC has accepted fines totalling £10.75 million for breaches of the Premier League’s rules relating to Financial Reporting, Third Party Investment and Youth Development.
‘The Club has been sanctioned by the Premier League with an immediate nine-month Academy Transfer ban and a suspended one-year first-team player transfer ban (suspended for two years).’
Chelsea will also be required to pay the cost of the Premier League’s investigation.