Newcastle United watch on as Chelsea face UEFA punishment after Joao Pedro transfer - on one condition
Two of Newcastle United’s European rivals have been punished by UEFA for breaching financial rules.
Newcastle United have complied with Premier League Profitability and Sustainability Rules following the June 30 deadline and prepare for a return to the Champions League this coming season, having also satisfied UEFA’s financial rules.
But Chelsea and Aston Villa, who qualified for the Champions League and Europa League respectively, have been punished by UEFA for breaching the European football governing body’s financial rules.
Despite being compliant with PSR domestically, Chelsea exceeded UEFA’s limits on financial losses as the club’s £200million sale of its women’s team to sister company Blueco 22 Midco Limited was not taken into account in UEFA’s calculations. Villa also breached the limits for allowable losses.
UEFA’s allowable losses stand at £170million over a three-year period, with a squad cost ratio of no more than 80% of revenue paid out in wages. The losses are calculated differently from the Premier League, who limit losses to £105million over the same period.
Now both clubs have been handed significant fines for breaching squad cost and football earnings rules, with Chelsea facing the most significant punishment.
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Chelsea & Aston Villa handed major punishment by UEFA
Rather than expel the clubs from their respective competitions or impose a European ban, UEFA have handed out fines to clubs who are deemed to have overspent and breached the financial rules.
Chelsea have been slapped with a £26.7million fine and could be fined a further £51.2m if they fail to comply with the rules over the next four years.
Aston Villa, who played in the Champions League for the first time last season, have been fined £9.5million with a further £12.9million based on conditional compliance over the next three years.
Barcelona, Lyon and Roma were also handed significant fines, while Hajduk Split, Besiktas and Panathinaikos were all fined less than £1million.
Villa were also fined £52,000 for a late submission of club accounts.
The clubs could also be banned from registering players for UEFA competitions this coming season unless they have a positive transfer balance by the end of the summer transfer window. Chelsea have already spent significantly on the signings of Liam Delap and Joao Pedro ahead of Newcastle United.
Following the significant fine, Chelsea released a statement which read: "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."
Newcastle United preparing for Champions League return
Like Chelsea, Newcastle are preparing to return to the Champions League after securing qualification ahead of Aston Villa on the final day of the season.
The Magpies became the first Premier League side to qualify for the Champions League after finishing fifth on league position alone due to the UEFA European Performance Spot rules introduced in 2023-24.
It will be the club’s first involvement in the competition in the new 36-team format.
Villa’s progress to the Champions League quarter-final during the 2024-25 season is understood to have made the club around £100million. Now Newcastle will be hoping to reap the financial rewards of qualifying for Europe’s elite club competition in its new format.