Why Chelsea are facing ‘existential threat’
Answering the big questions after reports that Abramovich may be having second thoughts about writing off £1.6bn loan
Q Has Roman Abramovich really had a change of heart over his promise to write off his £1.6billion loan at Chelsea?
A It has been a long two months since Abramovich – then still clinging on to the vain hope that he might yet avoid sanctions – put the club up for sale and promised to write off massive loans. All net proceeds from the sale, he claimed then, would be donated to a charitable foundation which would be “for the benefit of all victims of the war in Ukraine”.
He said: “I have always taken decisions with the club’s best interest at heart. In the current situation, I have therefore taken the decision to sell the club, as I believe this is in the best interest of the club, the fans, the employees, as well as the club’s sponsors and partners.
“The sale of the club will not be fast-tracked but will follow due process. I will not be asking for any loans to be repaid. This has never been about business nor money for me, but about pure passion for the game and club.”
However, much has changed since and his charitable mood can only have been tested as the UK and EU pressed ahead with curbs, while the Premier League tore up his right to own Chelsea.
Any hope that the sanctions might be eased any time soon have been dashed in the past fortnight as authorities tightened the screw, targeting close associate and Chelsea director Eugene Tenenbaum and freezing hundreds of millions of pounds worth of assets in Jersey, France and beyond.
Whether Abramovich has now genuinely staged an about-turn on his loan pledge remains to be seen. Telegraph Sport was told by sources close to the Government process that under an amended proposal put forward by Chelsea late last week, the club’s parent company, Fordstam Ltd, would pay off loans to offshore Camberley International Investments.
However, with Chelsea yet to comment on Abramovich’s intentions during behind-closedclub door talks, the full picture is incomplete.
Q What is the Government’s stance?
A There are two main reasons why the Government cannot now allow Abramovich to take money out of the deal. First, ministers have maintained the position that any amendment to Chelsea’s operating licence as a frozen asset would be granted only if the club can prove the sanctioned billionaire does not profit.
Second, there is simply no time to entertain such late requests. Before the 11th hour apparent change of tack from Abramovich, Culture Secretary Nadine Dorries had warned Chelsea were already on “borrowed time”. “There is a very short window left for that sale to take place,” she said.
Chelsea are operating under a special licence from the UK Government which ends on May 31. When asked how soon the club must be sold, Dorries answered: “[Within] weeks.”
Q Why has this all happened now?
A Given all parties want to avoid Chelsea going out of business, negotiators for Abramovich may perceive this as the most likely juncture in which the Government might blink. Talks between the club and ministers are at their most detailed, delicate and critical stage as exclusive talks have now begun with a preferred bidder in Todd Boehly.
Q What will happen if a deal is now delayed beyond May 31?
A This is the potential disaster scenario for Chelsea. The licence to continue operating under exceptions to Abramovich’s blanket sanctions expires just eight days before the Premier League meets to agree on sign off on its clubs for season 2022-23.
Whitehall sources say there is a genuine “existential threat” for the club if a deal fails to complete by May 31.