The government is aware of attempts to alter any potential agreement so that Roman Abramovich receives the £1.5 billion owed to Chelsea; Chelsea's government license to operate expires on May 31; Chelsea may go out of business if the sale is not finalized by then.Chelsea's sale has been put in jeopardy due to differences over what will happen to the £2.5 billion the club is projected to fetch.
The favored bidder for Chelsea is a consortium formed by US businessman Todd Boehly, but the UK government will not allow the sale to proceed unless it is assured that Roman Abramovich will not get any of the proceeds.Abramovich put Chelsea up for sale two months ago, saying he would not ask for repayment of his loans to the club and that all earnings would go to a benevolent foundation for "all the victims of the tragedy in Ukraine."On March 10, the government sanctioned Abramovich, barring him from doing any business in the United Kingdom.
The Raine Group, an investment bank hired by Abramovich, is handling Chelsea's sale, and he will have the final word on who buys the club.The government is aware of plans to manipulate any potential purchase so that Abramovich receives the £1.5 billion loaned to the club by his parent company Fordstam Limited.
The government must grant a special license for Chelsea to be sold, and it would refuse to do so if any of the revenues went to Abramovich or were used to repay the club's loans to him.Chelsea's government operating license expires on May 31, and the club faces going out of business unless it is sold or the license is extended.
The Premier League will convene on June 8 to form the new season, by which time Chelsea would need to have obtained a license to compete in the next season.
Chelsea and Abramovich have both declined to comment on the situation.Kaveh Solhekol, Sky Sports News Chief Reporter, provides an analysis.
Some of the bidders were notified this week that Abramovich or a firm affiliated to him wanted to be paid back for the loans he made to Chelsea. That would imply that Roman Abramovich was not writing off his £1.5 billion in loans, and that the money could eventually make its way back to him. Because Abramovich is sanctioned, the UK government is not going to stand for it.So, how is the money going to be spent? And who will be in charge of that money? Is it going to be the UK government or Abramovich who does it? Because he is sanctioned, it can't be Abramovich. He is not permitted to conduct business in the United Kingdom by the British authorities. As a result, we could end ourselves in a situation where Abramovich and the government are at odds. The clock is ticking all the time. Chelsea's operating license expires at the end of this month, on May 31, therefore the time is ticking.This has two sides to it. From Abramovich's perspective, he is thinking: "They want me to sell Chelsea for £2.5 billion, but I'm not going to get any of it." I'm going to lose every penny. I'm going to lose the club and the £1.5 billion I've lent the club." The UK government, on the other hand, is saying, "Look at what's going on in Ukraine, look at what Russia is doing in Ukraine." Abramovich is a Russian oligarch with ties to the Russian government. He has ties to Russian President Vladimir Putin. As a result, he has been sanctioned. We cannot allow him to conduct business in the United Kingdom. We can't have him earning a penny.Chelsea Football Club is smack in the thick of it all.
What happens if Abramovich refuses to sell Chelsea? And, of course, he is capable of doing so. He has other business interests as well. He owns a £150 million mansion in Kensington. He's not selling it right now and donating the earnings to charity. He's hunkered down in his seat.The only problem is that if he stays put and refuses to sell Chelsea, the club will go bankrupt. Chelsea will cease to exist, and he has always stated that the club is very dear to his heart, and he does not want this to happen. But, if it were to happen, who would Chelsea fans hold responsible? Would they put the blame on Abramovich or the UK government?
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