The UK government's sanctions on club owner Roman Abramovich means it is not business as usual at Chelsea FC.
It is definitely a strange time to be a fan of Chelsea FC. The Premier League giants are the defending champions of Europe, having won the Champions League last season.
They are also the current Club World Cup champions, having won the trophy earlier this season. They are currently third in the league and narrowly lost out to Liverpool in the Carabao Cup final.
But, due to reasons entirely beyond their control, they are also a club very much in limbo. The UK government’s sanctions on club owner Roman Abramovich means it is not business as usual at SW6.
Statement from Chelsea Football Club.
— Chelsea FC (@ChelseaFC) March 10, 2022
So what exactly is happening at the club? Well, let’s take a quick look at how things are unravelling – and how they can go in the future.
The reason is simple – Russia’s invasion of Ukraine. Vladimir Putin’s call for war has led to an intense degree of scrutiny on Russian businessmen around the world.
This is in turn due to the fact that, in Russia, no one amasses an exorbitant amount of wealth without being close to the Kremlin. Hence the use of the term “oligarch” to describe most of them.
Abramovich has always been under scrutiny from a few, but this time the UK government felt the need to sanction him and freeze all of his assets. This includes, for obvious reasons, Chelsea.
Quite a few. Since Abramovich’s assets are frozen, Chelsea in effect have little to no budget for anything at the moment. This includes contract negotiations with current players and transfers in the future.
There is also a list of exceptions in place. Bills and wages can be paid, season-ticket holders can attend games and there is a travel budget in place to allow players to get to and from games.
However, the club cannot sell merchandise or even tickets to games – which means a loss of significant revenue, at least for the short term.
And they will continue to receive money from the FA, Premier League and the Champions League – but they cannot use the money.
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The sanctions also meant that, at first, the sale of the club could not go ahead as planned. However, Abramovich has struck a deal with the British government to ensure the sale goes ahead.
This means that, in theory, any effects of the sanction could likely be short-term. Especially since the deadline for opening bids only extends to next week!
The solution is in place already – a quick sale to a new owner. The Raine Group, an American bank facilitating a takeover, has been given the go-ahead by Abramovich to complete the sale.
Should it be done soon, Chelsea will continue to operate as per normal. Fans will no doubt hope that happens sooner rather than later.
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