Chelsea have breached UEFA limits on financial losses, according to the UK Times.

On Monday, the Blues posted a net profit of almost £130 million in their latest accounts published.

This profit was arrived at after they sold their women’s team to their sister company.

A statement on Chelsea’s website however didn’t specify how much the women’s team was sold to BlueCo, the holding company used in Todd Boehly and Clearlake Capital’s takeover three years ago.

It only noted that “profit on disposal of subsidiaries” was £198.7 million .

The move helped Chelsea avoid breaching the Premier League’s Profit and Sustainability Rules last season.

But the loophole has been rejected by UEFA and means the Blues have overspent and are now set to be punished.

It is reported that the Blues are now in talks with UEFA over a financial penalty and having to follow a spending plan for the next three seasons.

Chelsea ‘breach UEFA limits on financial losses’, could be banned from Europe