Chelsea given £110m Government lifeline to finish the season
Chelsea are permitted to use all the potential £35m in TV income from the Premier League and Uefa until the end of the season plus all prize money they are due from domestic and European competitions
Chelsea have been handed a £110million cash lifeline — to ensure they can finish the season.
The Government’s decision to ease their financial stranglehold on the Blues came as sanction-hit Russian owner Roman Abramovich was banned by the Premier League.
World and European club champions Chelsea were in danger of plunging into administration after the Government’s stringent licence limited funds to meet their £28m monthly wage bill and all other outgoings.
But MPs revealed that two days of negotiations with club chiefs had resulted in a revised licence which will now allow the Blues to access previously frozen television and prize money.
Chelsea are permitted to use all the potential £35m in TV income from the Premier League and Uefa until the end of the season plus all prize money they are due from domestic and European competitions.
They are set to pocket £39m from the Premier League if they stay in third place — and up to £36m if they retain their Champions League crown.
That adds up to a potential £110m, effectively confirming they will not slide into the red and risk defaulting on payments that could see administration and a nine-point deduction.
Department for Digital, Culture, Media & Sport officials have also lifted the £500,000 cap on match day outlay to £900,000 per game.
And while the limit of £20,000 on away travel expenses remains, the Government is set to increase it if Chelsea convert their 2-0 first-leg advantage over Lille in the last 16 of the Champions League into quarter-final progression on Wednesday.
A DCMS spokesperson said: “We have said we would engage with Chelsea to understand what is needed to allow games to be played to minimize the impact on the leagues and fans.
"Following extensive engagement with the club, we have made further operational amendments to the licence to do so.”
Chelsea have also been given dispensation to meet its academy expenses, pension provisions of current and former employees and other day-to-day outgoings.
The club anticipates full houses of 41,000 for both Sunday's game with Newcastle and against Brentford on April 2, as both were sold out before Thursday’s bombshell.
But Chelsea’s pleas to be allowed to sell tickets for future matches this season have fallen on deaf ears so far.
