Chelsea could face punishment from the Premier League due to their historic breaches of Financial Fair Play (FFP) regulations, according to a new investigation. Evidence has emerged suggesting that former owner Roman Abramovich evaded FFP rules during his tenure at the club.
A joint investigation called Cyprus Confidential, conducted by various media outlets including The Guardian, the Bureau of Investigative Journalism, the International Consortium of Investigative Journalists, and Germany’s Paper Trail Media, has uncovered hidden payments made by Abramovich to individuals involved in Chelsea’s transfer activities and changes in management.
One such payment was made to Italian football agent Federico Pastorello, who is believed to have close connections to former Chelsea manager Antonio Conte. Pastorello sold a 75% stake in the American company Excellent Investment Fund to Abramovich’s Conibair Holdings on the same day that Conte signed a new £9.6m per year contract with Chelsea.
The investigation also revealed a £6m payment made in March 2013 from Abramovich’s Leiston Holdings to Gulf Value FZE for “advisory services related to sport research and consultancy.” This payment was signed off by John Bico-Penaque, the agent of Eden Hazard, who joined Chelsea from Lille that season.
Furthermore, companies associated with Zoran and Vladica Lemic, the latter of whom is an important adviser to Abramovich and played a significant role in recruiting players such as Arjen Robben, Branislav Ivanovic, Nemanja Matic, and Carlo Ancelotti, were also involved in these transactions.
Experts consulted during The Guardian’s investigation stated that if Chelsea failed to disclose these payments, they would likely be in breach of FFP rules, which could result in a deduction of points.
The Premier League is already investigating Chelsea’s finances from 2012 to 2019, as the club’s new owners have reported that “incomplete financial information” was submitted during Abramovich’s ownership.
In response to the allegations, a Chelsea spokesperson stated that these incidents occurred prior to the current ownership and were based on documents that the club has not seen and do not involve any current individuals at the club.
The FA has confirmed that they are investigating the matter, while UEFA has already imposed an £8.6m fine on Chelsea following the admission made by the new owners. However, UEFA is limited in its ability to punish breaches older than three years.
