The Russian oligarch had hoped to secure the sale of the club before the UK government sanctioned him.
Roman Abramovich’s hopes of selling Chelsea have gone up in smoke.
The UK government has sanctioned the Blues’ Russian owner as a part of its response to Russia’s invasion of Ukraine by freezing his assets – including Chelsea – and prohibiting him from entering the country or doing any transactions with UK individuals and businesses.
This leaves Chelsea’s future uncertain, as Abramovich’s attempts to sell the club have now officially halted.
Why has the UK sanctioned Abramovich?
The British government has penalized Abramovich, as well as several other high-profile Russians, due to his ties with Russian president Vladimir Putin, who ordered the recent invasion of Ukraine.
“ABRAMOVICH is associated with a person who is or has been involved in destabilizing Ukraine and undermining and threatening the territorial integrity, sovereignty and independence of Ukraine, namely Vladimir Putin, with whom ABRAMOVICH has had a close relationship for decades,” read a statement from HM Treasury’s Office of Financial Sanctions on Thursday.
“This association has included obtaining a financial benefit or other material benefit from Putin and the Government of Russia.
“This includes tax breaks received by companies linked to ABRAMOVICH, buying and selling shares from and to the state at favourable rates, and the contracts received in the run-up to the FIFA 2018 World Cup.
“Therefore, ABRAMOVICH has received preferential treatment and concessions from Putin and the Government of Russia.”
How does this affect Chelsea?
The main takeaway from this sanction is Chelsea cannot be sold right now. Abramovich tried to make a quick sale last week. But he couldn’t find a bidder that matched his reported £3 billion asking price in time.
Freezing his assets is the UK’s attempt to stop him from making money.
Now Chelsea cannot sell any more match tickets, club merchandise, and buy or sell players during the sanction.
But the London club will get a ‘special license’ to ensure all its football-related activities go ahead, that staff get paid, and the existing season ticket holders can still attend games in person.
As for the sale of Chelsea, the government may consider making another addition to the special license. For now, though, it’s off the table.
What does Chelsea’s special license allow?
- The club can pay the wages of all staff members.
- Can cover costs of travel between games, as long as it does not exceed £20,000 per match, and for hosting fixtures at home for no more than £500,000 per game.
- Existing season tickets or fans with match tickets before 10 March 2022 can attend matches.
- Rights-holding broadcasters may transmit all club games.
The European champions return to action on Friday evening away to Norwich City in the Premier League. They are favorites for all three points at Carrow Road. Bet365 has them priced at 1.33 to win the match at the time of writing.
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