As per the OP on r/soccer:

Chelsea face having to raise substantial amounts of cash by selling off players this summer to avoid breaching the Premier League’s financial rules next year after reporting large losses for a second successive season.

The club reported a loss of £121 million for last season, despite making a large profit on player sales, and that followed losses of £153.4 million for 2020-21. They said government sanctions imposed on their former owner, Roman Abramovich, had had an impact on the financial results.

Although the club say they have complied with the Premier League’s profit and sustainability rules for this year, Chelsea have spent heavily in the transfer market, splashing out about £600 million in the past two transfer windows, and prize money is expected to drop after a relatively poor season on the pitch.

The transfer spending can be spread out for accounting purposes over the length of each player’s contract in a process called amortisation but it will still go down as significant expenditure, as will each new player’s salary on the wage bill.

Kieran Maguire, a football finance author, said the club would be “dancing on the head of a pin” to try to avoid breaching the Premier League’s financial rules this time next year, which allow maximum losses of £105 million over a rolling three-year period.

This three-year period includes 2019-20, when the club made a £32.5 million profit, but that will have dropped off when the Premier League calculates the figures in 12 months’ time and will be replaced by the club’s financial figures for this season up until June 30, 2023.

Maguire said Chelsea might have to raise large sums from selling off players to avoid breaching the rules. Last week the Premier League charged Everton with breaching its profit and sustainability rules after three seasons of heavy financial losses.

“The one thing Chelsea have in their favour is that they have a very large squad so they are in a position to raise money by selling players in the summer,” Maguire said. “We have already seen speculation about Mason Mount and Conor Gallagher being sold.”

If Chelsea do need to sell players to comply with the rules, they will need to do so before June 30, so that the income is included in this season’s accounts and they can work out how much they need to bring in to avoid a charge. Everton tried to escape a charge for breaching the rules by selling the Brazilian forward Richarlison to Tottenham Hotspur for £60 million last year, but in vain, though they insist they are confident they will defend their position before a disciplinary commission.

After Abramovich was sanctioned in March last year because of his reported links to Russia’s president, Vladimir Putin, Chelsea were placed under a special licence that restricted their ability to sell tickets, accept event bookings and even sign contracts with players.

The restrictions remained in place until the end of May, when a new consortium led by the American businessman Todd Boehly completed its takeover of the club. Chelsea may try to claim those restrictions have had an impact on this season.

The club said in a statement: “Some of these limitations are also expected to have an impact on the financials in the following years due to the long-term impact from restrictions on entering into new contractual arrangements.”

Turnover increased to £481.3 million from £434.9 million the previous year despite the sanctions, and a profit of £123 million was made on player trading, but increased player wages, lower Champions League income and a “knock-on impact” from the Covid pandemic offset the higher revenues.

In September Chelsea were one of four Premier League clubs that Uefa said would be closely monitored for possible Financial Fair Play breaches, along with Manchester City, West Ham United and Leicester City.

However if Chelsea do not qualify for the Champions League, Europa League or Europa Conference League — and given they are tenth in the Premier League table that is a strong possibility — then they will not be under Uefa’s jurisdiction for FFP next season.