As a Chelsea FC fan, I was intrigued to hear about the latest move by Todd Boehly, the club’s owner, to separate the women’s team from the men’s team. The plan is to operate the women’s side independently, with the potential to sell a stake in the team at a reported valuation of £150m. But as the Premier League begins to scrutinize the deal, I couldn’t help but wonder - what does this mean for the club’s profit and sustainability rules (PSR)?
The Stamford Bridge faithful will be watching with bated breath as the Premier League reviews the deal
On the surface, the move seems like a clever way to ease the club’s PSR position, which has been a concern since Boehly and Clearlake Capital took over in May 2022. The sale of the women’s team could bring in tens of millions of pounds in paper profit for Chelsea FC Holdings, which could help offset the heavy expenditure on player acquisition in recent years.
But as the Premier League digs deeper, they’ll be looking to ensure that the deal complies with rules and regulations around fair market value for deals and associated party transactions (APT). This isn’t the first time Chelsea FC has been involved in a related-party transaction - the sale of The Hotel at Chelsea Limited to BlueCo22 Properties Limited in the 2022/23 financial year raised some eyebrows, and it’s still unclear whether that deal met the regulations.
The Premier League will be scrutinizing the deal to ensure it meets PSR rules
As a fan, I’m torn. On one hand, I’m excited about the potential for the women’s team to operate independently and potentially attract new investment. On the other hand, I’m worried about the potential implications for the club’s PSR position, and whether this deal will ultimately be good for the club in the long run.
Todd Boehly’s move to separate the women’s team from the men’s team has raised questions about the club’s PSR position
One thing’s for sure - the next few weeks will be crucial as the Premier League reviews the deal. I’ll be watching with bated breath to see how it all plays out, and what it means for the future of Chelsea FC.
“The sale of the women’s team could bring in tens of millions of pounds in paper profit for Chelsea FC Holdings, which could help offset the heavy expenditure on player acquisition in recent years.”
