Chelsea and Aston Villa learn punishments for breaching UEFA's Financial Fair Play rules

Chelsea have been slapped with a €31million (£26.8m) fine by UEFA which could rise to €91m (£78.5m) if certain conditions are not achieved over the next four years after being found to have broken financial rules.

European football’s governing body announced on Friday that Chelsea had agreed to a settlement which will see them pay an unconditional fine of €20m (£17.3m) for not complying with their 'football earnings rule’ which was assessed for the first time in the 2024-25 season. That could increase to €80m (£69m) if they do not comply with targets set by UEFA.

The Blues will also pay a further €11m (£9.5m) fine for breaching the ‘squad cost rule’. UEFA’s CFCB First Chamber imposed the disciplinary measures against Chelsea, as well as issuing other various fines to Aston Villa, Hajduk Split, Barcelona, Lyon and Porto.

Villa have also agreed to their own settlement of a €20m (£17.3m) fine, of which €5m (£4.3m) is unconditional, for failing to comply with the ‘football earnings rule’.

They too will pay a further €6m (£5.2m) for breaching the ‘squad cost rule’, which permits clubs to spend no more than a fixed proportion of their revenue on transfers and wages.

Last season, that figure stood at 80 per cent. From the forthcoming campaign, it will be 70 per cent, presenting a further challenge for competing clubs.

Villa’s wages-to-turnover ratio was substantially higher as the club sought to reach the Champions League for the second successive season. The fine is about £9.5m, though it should be noted the club did comply with Premier League spending rules in their most recent accounts.

Villa are confident the punishment will not affect their ability to invest in the squad this summer as boss Unai Emery tries to return his team to Europe’s main club competition, after missing out narrowly last term.

UEFA said: ‘In assessing the clubs’ compliance with the football earnings rule, the CFCB placed particular attention on transactions involving the sale of tangible or intangible assets, the exchange of players (so called “swaps”) and the transfers of players between related parties.

‘Clubs were required to perform adjustments, as profits from such transactions cannot be recognised as relevant income according to the UEFA Club Licensing and Financial Sustainability Regulations: Edition 2024 (“Regulations”).’

UEFA added both Chelsea and Villa were found to have a reported squad cost ratio between 80 and 90 per cent, and reminded them that as from 2025, they will only be allowed to spend 70 per cent of their revenue on player-related costs.

Mail Sport approached Chelsea for comment.