Why Chelsea and Aston Villa have been fined by UEFA – and what they must do to avoid more serious punishment | OneFootball

Chelsea and Aston Villa are among the clubs that could be restricted from registering new players for UEFA competitions after being slapped with hefty fines by European football’s governing body.

UEFA said both failed to comply with the football earnings rules, with the organisation outlining how they examined transactions “involving the sale of tangible or intangible assets, the exchange of players (so called “swaps”) and the transfers of players between related parties”.

They said those deals that fall into those categories “cannot be recognised as relevant income”.

Chelsea and Villa also fell foul of UEFA’s squad cost rules, which say you can only spend a maximum of 80% of your revenue on player costs such as transfer fees and wages.

Both have entered into agreements with UEFA’s Club Financial Control Body (CFCB) to avoid further punishment.

Chelsea will have to pay a total of £27m in fines, and potentially £52m more if they breach their four-year agreement with the CFCB.

Villa, meanwhile, have been forced to pay £9.5m in fines and could pay £13m more if they fail to comply with their three-year plan.

Barcelona, Hadjuk Split, Lyon and Porto have also been fined for not complying with UEFA’s football earnings rule, the organisation said.

What do Chelsea need to do now?

UEFA said Chelsea broke the football earnings rules for the reporting periods ending in 2023 and 2024 because they did not adjust their results to account for selling assets (such as hotels), player swap agreements with other clubs and the transfers of players between related parties.

Their settlement agreement will cover the next four seasons, with a football earnings deficit target, the amount the club can lose, set for each year in order to avoid further punishment.

They could be fined another 20 million euros for each year of the settlement that they do not reach the target.

Crucially, however, Chelsea have been told they could be restricted from registering new players for UEFA competitions unless they have a “positive transfer balance” on their list of registered players.

It applies for the 2025/26 season and 2026/27 season and could apply in future seasons depending on whether Chelsea comply with their set out targets.

The transfer balance is the difference between the cost savings from players that are sold, and the costs from players that have been signed.

Essentially, it means Chelsea need to make player sales or risk being unable to register the likes of Liam Delap and Joao Pedro for their Champions League campaign.

In a statement, Chelsea said: “Chelsea FC has entered into a settlement agreement with UEFA concerning a break even deficit reported by the club under UEFA’s Financial Sustainability Regulations covering the financial years 2022/2023 and 2023/2024.

“The club has also agreed to pay a fine as a result of the Club’s squad cost ratio in the 2024 reporting year being between 80% and 90%.

“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.”

If Chelsea exceeds any of the targets by more than 20 million euros, the agreement is terminated and they will be excluded from the next UEFA competition they qualify for.

What do Aston Villa need to do now?

The CFCB said that, in Villa’s case, it had placed “particular attention on transactions involving the exchange of players (so called “swaps”)”.

Their settlement agreement lasts three years and like Chelsea, have been set individual targets for each of those years. They could be fined another five million euros for each year they do not comply.

And they must also achieve a positive transfer balance or risk not being able to register new players for the Europa League next season. Whether or not it applies in future seasons depends on their ability to meet UEFA’s targets.

If Villa exceed the 2025, 2026 or final target by more than 20 million euros, the agreement is terminated and they will be excluded from the next UEFA competition they qualify for.