Roman Abramovich sanction, the current situation
Chelsea’s owner, Roman Abramovich has in recent times been making the headlines due to the fallout between Ukraine and Russia. The Russian billionaire has been under serious scrutiny owing to his association with Russian President, Vladimir Putin, and consequently received his marching orders. The 55 years old oligarch is being forced to sell the club he has successfully managed for 19 years.
A brief historical overview of Roman Abramovich’s take-over of Chelsea
Roman Abramovich joined Chelsea as the owner of the club in 2003 when the club was struggling. He reportedly bought the club for a fee of £140million. Ever since, he has provided a loan in the region of £1.5billion to the club, which drastically increased the fortune of the club. Before his reign as the boss at the Bridge, Chelsea FC had only managed to make 3rd position as their best in the Premiership standing. His first year at Chelsea saw them finishing as the first runner-up. Ever since Chelsea had hardly finished the season without a European competition’s participation. Additionally, the club has grown to be a major threat to the big guns at the European level.
How many trophies has Chelsea won under Roman Abramovich?
Roman Abramovich’s reign at Stanford Bridge has been greeted with huge success. His 19 years reign at the club has seen the club scoop over 20 cups both locally and internationally, including the World Club Cup that was recently won upon their triumph at the 2020/2021 UEFA Champions League. The table below shows the total trophies that the club has won under the auspices of the the Russian boss.
|2020/2021||Club World Cup|
|2020/2021||UEFA Champions League|
|2017/2018||English FA Cup4|
|2016/2017||English Premier League|
|2014/2015||English League Cup|
|2014/2015||English Premier League|
|2011/2012||English FA Cup|
|2011/2012||UEFA Champions League|
|2009/2010||English Super Cup|
|2009/2010||English FA Cup|
|2009/2010||English Premier League|
|2008/2009||English FA Cup|
|2006/2007||English League Cup|
|2006/2007||English FA Cup|
|2005/2006||English Super Cup|
|2005/2006||English Premier League|
|2004/2005||English League Cup|
|2004/2005||English Premier League|
- 5 ENGLISH PREMIER LEAGUE
- 5 FA CUPS
- 3 ENGLISH LEAGUE CUP
- 2 UEFA CHAMPIONS LEAGUE
- 2 EUROPA LEAGUE
- 2 ENGLISH SUPER CUP
- 1 WORLD CLUB CUP
Why does Roman Abramovich want to sell Chelsea?
As a result of Vladimir Putin’s invasion of Ukraine, Chelsea’s boss has had to sell the club he so much dears. Russians that are involved in sports in all parts of Europe have been sanctioned, and Abramovich is trying to be extremely careful so as not to lose all. The Prime Minister of England refused to mention the name of the 55 years old oligarch and he had so many explanations to make. According to Boris Johnson,
“None of us want to live in a country where the state can take your house off you without a very high burden of proof and due process”. “There’s no point say, yeah, we’re going to go after him, and then you come up against the brick wall of lawyers. So we have to get it right.
“We’re also trying not to just make this about one individual. The top line of what our package on Monday will do is that the measures that you have against individual oligarchs in Europe will essentially allow us to catch them too. Plus the extra things that we are doing that Europe hasn’t caught up with or is not prepared to do, like Swift.”
Despite the strong defense made for him (Roman), he is aware that the rest of entire Europe may come after him.
How much does Roman Abramovich want to sell Chelsea?
Roman Abramovich is aware that he is not going to have a smooth ride in terms of selling the club solely on his terms. This is because nobody is willing to purchase a club with so many intricacies. Above all, the invasion of Ukraine by Russia has made the sale to be somehow knotty. His asking price for the asset is £3billion of which there are just a few people in the world who can afford the asking price. However, the legal and financial processes are way too complicated for any billionaire to cough out such a huge amount.
What are making the asking price not feasible?
As earlier mentioned, the intricacies surrounding the ownership of Chelsea FC are way beyond what anyone would be willing to afford. Some of the limiting factors that the sale could face are;
- Legal factors
- Financial factors
- Abramovich’s factor
The legal part of the deal is what have been fending potential buyers off. Roman Abramovich’s initial decision to hand over the stewardship and “care” of the club to their charitable foundation has since puzzled so many experts, and his legal stand as per the statement is sought for. So many interpretations were given to it one of which was the possibility that Abramovich is in fact saying that the Trust is to act as his de facto nominee on the board. This is just one of the intricacies that could well be lying in the contract that is to be signed.
Ever since the take over of Chelsea FC in 2003 by Roman Abramovich, the Russian billionaire has provided a loan of £1.5billion to the club and has recorded a loss of £145m for the tax year to the end of June 2021. This stands as a major threat to potential buyers who might be thinking of what amount could be invested to have near complete ownership of the club. For a club like Chelsea that has won almost all that is to win in the world of football, it will be very difficult to cough out such amount of money when there is still a recorded loss despite all the investment and trophies.
The interest that the Blues boss has for the club may as well be another red flag for any potential buyer who might just want to do a clean business without being faced with unsolicited legal actions.
Who are the likely potential buyers of Chelsea FC?
Ever since the club was offered for sale, so many individuals have been very careful in their indication of interests due to the legal issues that may become a major problem. On the contrary, some high-profile individuals have indicated interests. It should be borne in mind that serious-minded prospective buyers do not like disclosing their interests until the deal is done. Additionally, consortiums also look for a way to get the attention of potential serious buyers to do business through them. Consortiums are more unlikely to be able to afford the amount themselves. Nevertheless, these are some of the high-profile names that have indicated an interest in the purchase of Chelsea.
- Todd Boehly-Hansjorg Wyss consortium
- The Rickett family (Owner of Chicago Clubs)
- Muhsin Bayrak (Turkish business man)
- Conor McGregor
Abramovich’s final decision to sell chelsea
Although Abramovich wants to sell Chelsea, that will be to someone who will look after the club and protect his legacy and it is unknown whether some of the listed names will fit the profile of the owner he is looking for at the moment.
But before the sale, stay tuned to VAR247 for more in-depth analyses of the happenings surrounding the round leather game.