Chelsea, Newcastle, Nottingham Forest & Aston Villa fined for breaching UEFA-imposed financial rules - with the Magpies being hit hardest

In a significant blow to their respective bank balances, Newcastle United and Aston Villa have emerged as the hardest hit among the Premier League contingent. The Magpies have entered into a three-year settlement agreement with UEFA after failing to comply with the "football earnings rule," which was assessed on a three-year aggregate basis covering the financial years ending in 2023, 2024, and 2025.

Newcastle United FC and Juventus FC concluded a settlement agreement with the CFCB for a three-year period, in line with the framework introduced last season. The duration of the settlement agreement depends on the club’s ability to comply with the regulations based on submitted projections.

Consequently, each club is required to meet the final target and achieve full compliance with the football earnings rule by the end of the settlement period in the 2028-29 season (covering financial years ending in 2026, 2027 and 2028). For Newcastle, this includes a total fine of €10m (£9m/$11m), with €7m being conditional.

Beyond the earnings rule, the CFCB found widespread issues regarding the "squad cost rule," which limits spending to 70% of a club’s revenue. Four English clubs - Aston Villa, Chelsea, Newcastle, and Nottingham Forest - were all found to have exceeded this limit during the 2025 calendar year. The sanctions vary based on the severity of the breach and current financial trends at each institution.

The CFCB First Chamber found that Aston Villa FC (ENG), Chelsea FC (ENG), Newcastle United FC (ENG), Nottingham Forest FC (ENG), OGC Nice (FRA), RC Strasbourg (FRA), AEK Athens (GRE), ACF Fiorentina (ITA) and Fenerbahce SK (TUR) breached the squad cost rule by reporting a squad cost ratio above 70% for the 2025 calendar year. As a result, each club was imposed a fine calculated in proportion to the percentage points above the defined limit and the size of the club’s squad cost excess.

While the fines represent a financial headache, some clubs also face potential sporting restrictions. Aston Villa and RC Strasbourg were flagged for "significant" breaches, leading to restrictions on registering new players for UEFA competitions. However, UEFA noted that Villa and Chelsea have shown signs of improvement in their financial trajectories, allowing for a portion of their fines to remain conditional.

Regarding Aston Villa FC and Chelsea FC, which had already been sanctioned in the previous season, the CFCB First Chamber took into consideration the improving trend in their squad cost ratio between 2024 and 2025 in line with projections submitted as part of their settlement agreement. As a result, part of the fine is conditional upon the clubs continuing to significantly decrease their squad cost ratio in 2026. Villa's total fine stands at €22.5m (£19m/$26m), while Chelsea's is €3m.

The clubs under settlement agreements, specifically Newcastle and Juventus, are now operating under strict UEFA supervision. These agreements are not merely financial; they dictate how the clubs must manage their squads and balance their books through 2028. Failure to meet intermediate markers could result in even harsher bans from European football entirely.

The clubs agreed to the following obligations in the settlement agreement: to pay a fine, the level of which is based on the size of the assessed breach; to be subject to a restriction on the registration of new players on their List A for UEFA club competitions. Such measure is conditional or unconditional for each season covered by the settlement period depending on the club’s fulfilment of the conditions set in the settlement agreement; to reach intermediate annual targets, and be subject to the application of conditional financial and sporting measures should these targets not be met (i.e. from a stricter restriction on the registration of new players on the List A up to exclusion from the next UEFA club competition for which they will qualify).