Not true. If you're failing, but have a demonstrable plan for fixing the losses, they can say it's fine. If you're blatantly taking the proverbial, they're going to be far less lenient.
Since when? at the moment you should be averaging 15mil loss a year, Chelsea are around the 70-80mil mark and that won't come down very far anytime soon. League, it doesn't effect at all, Europe, they are looking like not being in the champs league with this squad, so they are failing to get in the champs league most likely, almost certainly won't get back to competing for the title without major investment. Lose 80mil a year, or 350mil one year, its still miles out. lose call it 70mil a year, 3 years, 210mil, buy a new 10mil player for 11 positions, 110mil, is 300mil REALLy that different to 200mil, when the limit for losses is.... 45mil?
Chelsea have no plan for fixing the losses, I tell a lie, they've had a plan, for 8 years, that has failed miserably and completely.
That's the point they are failing, BIG, with no way they can pretend they won't fail. So fail while trying to reduce costs and still get banned from their Europa cup slot, or spend a crapload, win the league, don't play in Europe at all.
Of course, that ignores the likely potential sponsorships some of the big teams FFP threatens might suddenly conjure up out of nowhere.
Chelsea simply don't have the income, largely due to stadium capacity and lack of corporate facilities, to help run a team with wages that large. To cut down wages dramatically they need to sell half the squad and buy another half a squad, which won't be cheap and how are you going to get great players on cheap wages.
Chelsea are boned, without cheating like City are trying to do, and it might not work for them either.