Chelsea Football Club has been slapped with the largest fine in Premier League history, totaling £10.75 million. This penalty comes as a result of the club’s involvement in a series of unlawful payments to agents and other parties during the transfers of several iconic players under the ownership of Roman Abramovich.

In an in-depth exploration of the Premier League’s explosive ruling, chief sports reporter Mike Keegan investigates the incidents, identifying the beneficiaries and the reasons behind the club’s American ownership’s decision to disclose wrongdoings that occurred under previous management.

Chelsea did what?

Just before acquiring the club in 2022, Chelsea’s new American proprietors learned of significant issues they would need to address upon finalizing the deal. They were informed of potential complications stemming from past financial indiscretions.

Eden Hazard is unveiled by Chelsea in 2012 – after a payment to an unregistered agent

The club took the initiative to report itself last year regarding breaches of the Premier League’s Youth Development Rules. These violations, committed by a former senior employee, involved improper registration of academy players between 2019 and 2022.

What were the issues?

Chelsea’s failure to inform the authorities about these payments violated the competition’s mandate to act ‘in good faith.’ This oversight prompted the new owners to complete the takeover and self-report, leading to the Premier League’s investigation.

The new owners completed the takeover, self-reported and the Premier League launched an investigation.

Its lawyers first looked at the information to determine whether, had it been declared, the monies involved would have put Chelsea in breach of Profit and Sustainability Rules (PSR). They ruled that it would not. The FA later launched its own probe.

Who was involved?

The devil is in the detail. Inside the Premier League’s findings, Chelsea admitted that between 2011 and 2018 payments totalling £47,524,925.74 were made by third party entities to 12 individuals or corporate entities.

Of those, around £23m were made to seven unregistered agents over seven transfers. Five of those seven transfers involved Eden Hazard, David Luiz, Andre Schurrle, Nemanja Matic and Ramires.

A further £19.3m was made to two entities in connection with the transfers of Willian and Samuel Eto’o. Around £1.4m was paid to third parties and should have been treated as remuneration to former sporting director Frank Arnesen, former scout and Abramovich advisor Piet de Visser and a further, unnamed individual.

Payments of £3.8m were also made in connection with one further transfer, with the player’s name redacted.

Names can be held back when they refer to minors or for data protection issues.

Chelsea signed David Luiz from Benfica in 2011 – and then re-signed him from PSG in 2016

Why did they do this?

Who knows? None of those involved remain at the club to explain themselves. If one was to speculate, this would appear to be a rare example of the long-suspected policy within football of dishing out ‘backhanders’ to look after those involved in deals being brought into the public eye.

Some would claim such behaviour is common practice, however, it is rare to see a club caught out as comprehensively as this.

Ramires is unveiled by Chelsea in 2010 – his transfer was named in the punishment

What is the punishment?

Chelsea were fined £10m, a Premier League record, and handed a one-window transfer ban, suspended for two years.

With regards to the academy breaches, they have been banned for nine months from taking players from other Premier League and EFL clubs.

They can still sign players from abroad and hand out new deals to existing players. They have also been fined a further £750,000 and will pay the league’s costs. The FA investigation, into 74 alleged breaches of agent regulations remains ongoing.

The Premier League acknowledged the new ownership’s co-operation throughout. Had that not been the case, the penalties would have been much more severe.