According to a statement from the club, the current ownership group, led by Todd Boehly, discovered "potentially incomplete financial reporting" and other possible breaches during their due diligence process before completing the purchase of the club in May 2022. The new owners have been praised for their "unprecedented transparency" after they self-reported the issues to the FA and the Premier League.
Chelsea has stated that it is cooperating with the FA to resolve the matter swiftly. This is not the first time the club has faced repercussions for past financial practices; they previously paid a 10 million euro fine to UEFA in July 2023 for similar "incomplete financial reporting" under the previous regime. The Premier League is also conducting its own separate investigation into the matter.