Roman Abramovich could be facing a race against time to sell Chelsea amid the threat of sanctions after an MP claimed in parliament that the Russian-born owner has links to Vladimir Putin’s regime.
It was widely reported on Wednesday that Abramovich is now open to offers for the club, with i revealing on Tuesday that there is interest from American investors. Swiss billionaire Hansjorg Wyss has also said that he has been approached with a view to taking over.
As part of the ongoing discussion of whether his assets will be frozen by the UK Government Labour leader Keir Starmer asked Boris Johnson during Prime Minister’s Questions “why on earth” Abramovich had not yet been sanctioned. Abramovich has previously strongly disputed claims that he is close to Putin, or has done anything to merit sanctions being imposed.
If Abramovich is able to find a buyer, the sale could be further complicated by an estimated £1.5bn worth of debt the club owes him, while a move could also potentially be blocked by other shareholders and club trustees.
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That means a sale may be held up in the short term, with legal experts suggesting he will face a number of obstacles before being able to transfer ownership to a new party.
“It’s not just agreeing a price and it’s not something that happens overnight,” Stephen Taylor Heath, Head of Sports Law at JMW Solicitors, tells i.
“Whoever is buying the club will expect their lawyers to do due diligence to establish any issues with operating the club. They’ll need to look at the debt, because if he has sold the club but still has substantial debt, the terms of the debt could be leveraged so you could exert control of the club.
“The other thing that could complicate a sale is if there are other shareholders in the company and they have an agreement that would require their approval.”
New owners will have to consider the existing debt when making offers, which could lead to lower bids. The Premier League will also conduct its owners and directors test, with any buyers coming under scrutiny regarding proof of funds and a plan to secure the club’s financial viability.
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One factor in Abramovich’s favour, if he wants a quick sale, is that he has owned the club since 2003. Club sales which have involved numerous owners in a short space of time are more complex, but it is possible the new trustees will still have a say in who takes over and will be need to be satisfied that the deal is in the best interests of the club.
Abramovich is reported to be taking these steps days afte releasing a statement claiming he had handed over “care and stewardship” to the trustees of Chelsea’s charitable foundation, which includes chairman Bruce Buck and women’s manager Emma Hayes.
“If Abramovich’s assets were frozen, and he still owns the club but can’t run it, market forces are such that if you’re forced to sell, it drives the price down,” Taylor Heath adds.
“Only Abramovich and his advisors will know the extent to which there is a very real prospect of sanctions being imposed on him, but you can only go so quickly [selling the club] because of the hoops you’ve got to go through.
“There’s more risk-taking on from the purchasers if they want to do a deal quickly, but that could drive the price down too as they’re taking a bigger risk. But this is a highly unusual situation which might act as a call for everybody to act quicker than they would normally.”
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