Potential buyers are circling Chelsea as the threat of sanctions looms over owner Roman Abramovich following Russia’s invasion of Ukraine.
The billionaire Russian was forced to make attempts to distance himself from ownership of the club – announcing on Saturday he would pass “stewardship and care” of Chelsea to the trustees of a charitable foundation – after the UK Government came under pressure to act over his links to Russian president Vladimir Putin.
i understands that interest in buying the club has been signalled within the past three weeks and that American investors are particularly keen to purchase what is considered one of world football’s prime assets.
The risk of the UK Government sanctioning Abramovich for his links to Russia grows ever greater while the invasion of Ukraine continues.
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Labour MP Chris Bryant told the House of Commons last week that the Home Office identified Abramovich as having links to the Russian state and has said he will continue to call for government “to sanction him and seize/freeze assets” until he condemns the invasion of Ukraine. Abramovich did not mention Russia, Ukraine or the invasion in his short statement on Saturday.
Abramovich would be unable to sell Chelsea if he had his assets frozen, lawyers have told i, meaning the situation could change rapidly. As of Tuesday afternoon, i was told that Abramovich’s stance remained that he did not want to sell Chelsea.
Although Abramovich attempted to place distance between himself and the club, lawyers have also said that transferring “stewardship and care” to the trustees but retaining his shareholding in the club means it would not insulate Chelsea from becoming a frozen asset.
Abramovich, 55, has loaned Chelsea around £1.5 billion since he bought the club in 2003 and has effectively bankrolled their success. The Club World Cup, won in February, completed the set of major silverware in club football Chelsea have won since he took ownership.
However, if the club became a frozen asset Abramovich would no longer be able to withdraw or inject money into the company, leaving Chelsea in a precarious position.
Key questions on Chelsea’s future answered
What happens to Chelsea if Roman Abramovich’s assets are frozen?
According to lawyers, despite the statement released on Saturday suggesting Abramovich was handing “stewardship and care” over to the charitable foundation trustees, it has no legal meaning and Chelsea remains one of his UK-based assets. Therefore, if he is sanctioned by the UK Government for links to the Russian state and his assets are frozen, Abramovich would be unable to sell the club, withdraw money from it or inject money into it.
What are the chances of Chelsea ceasing to exist as a football club?
Virtually non-existent. While they have been bankrolled by Abramovich (he has lent Chelsea £1.5bn since buying the club in 2003) it still generates hundreds of millions of pounds. But, in terms of competing at the highest level of English football, becoming a frozen asset would leave the club in limbo and would be likely to force a major change of approach. It is hard to see how they could compete with the likes of Manchester City and Newcastle in the transfer market.
How much is Chelsea worth and could someone buy it?
Chelsea are valued at about £1.6bn (considerably more than the £300m the Saudi Public Investment Fund paid for Newcastle United) and are considered one of the most prized properties in global football. Clubs of Chelsea’s stature rarely become available and there would be a clamour to buy the club. As of Tuesday afternoon, i was told Abramovich remained uninterested in selling.
Read Sam’s full analysis on the uncertain future of Abramovich and Chelsea here
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