What does Roman Abramovich sanctions mean for Chelsea FC?

LONDON: Future of Chelsea has been cast into doubt after Russian owner Roman Abramovich was sanctioned by the United Kingdom in reaction to the invasion of Ukraine.

Since taking over as chairman in 2003, Abramovich has financed the Blues’ most successful period in their history, with the team winning five Premier League crowns and two Champions Leagues among 19 major trophies.

The oligarch, who is said to be a member of Russian President Vladimir Putin’s close circle by the UK government, has already expressed his desire to sell Chelsea owing to the possibility of penalties.

The aim, according to UK Culture Secretary Nadine Dorris, is to “hold those who have enabled the Putin regime to account.”

“Today’s sanctions obviously have a direct impact on Chelsea and its fans,” she tweeted. “We have been working hard to ensure the club & the national game are not unnecessarily harmed by these important sanctions.”

Chelsea, who play Norwich in the Premier League later on Thursday, has been granted a special licence to continue operating.

Even that licence, though, sets some stringent conditions on a team that is still in contention for the Champions League and FA Cup this season and is now ranked third in the Premier League.

Look at the impact of Abramovich’s sanctions on Chelsea FC:

Sale on hold

Because Abramovich’s assets have been frozen, any sale of the club appears to be on hold for the time being.

“Chelsea Football Club is now also subject to an asset freeze under UK financial sanctions,” The Office of Financial Sanctions Implementation of the government stated.

A number of potential buyers have expressed interest, though many thought Abramovich’s estimated £3 billion ($4 billion) asking price was too high.

In a statement, the Chelsea Supporters’ Trust (CST) said: “The CST notes with concern the government’s statement regarding the owner. Supporters MUST be involved in any conversation regarding ongoing impacts on the club and its global fan base.”

Players can be paid

Chelsea’s licence allows the club to keep paying workers and expenses associated with hosting matches at Stamford Bridge.

However, travel costs for away games have been regulated at £20,000 per match, which could present problems for Champions League away matches, such as Chelsea’s trip to Lille, France, next week.

No signings or new contracts

Chelsea can also pay money owed to them under transfer agreements signed before March 10, 2022.

No exceptions have been made, however, for the recruitment of new players or the signing of new contracts.

Cesar Azpilicueta, the captain, and Antonio Rudiger, a crucial defender, are both out of contract at the end of the season and might go on a free transfer.

However, the licence is only valid until May 31 and could be changed when the transfer window reopens.

No new tickets or merchandise sales

Season-ticket holders at Stamford Bridge will be able to attend games, but no ticket or retail sales that generate revenue for the club would be allowed.

Away fans may be barred from entering Stamford Bridge, and Chelsea fans may be prevented from attending away games.

TV/prize money frozen

Chelsea can be reimbursed money owed to the club from extraordinarily lucrative television contracts for the Premier League and Champions League.

However, that money will be blocked, leaving the club with the dilemma of how it will make its wage obligations in the following months.

Chelsea lost £153 million in the fiscal year ending June 30, 2021, despite winning the Champions League the previous season.

Even before the club-record signing of Romelu Lukaku for £97 million in August, the club had a £309 million salary bill.

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