Roman Abramovich Thread

[Vesper 29,013]

Chelsea will NOT feel financial impact even if owner Roman Abramovich is placed on UK Russia sanctions list

https://www.thesun.co.uk/sport/17751863/Chelsea-financial-roman-abramovich-uk-russia-sanctions/

Blues owner Abramovich and Everton training ground sponsor Alisher Usmanov were both named by Lib Dem MP Layla Moran among 35 prominent Russians she believes should have their assets frozen and confiscated.

 

PM Boris Johnson was forced to correct the Parliamentary record after wrongly telling the Commons that sanctions had already been sanctioned.

In 2018, Abramovich was informed his “golden visa” would not be renewed when it lapsed.

He has rarely been in the UK since and has taken an Israeli passport.

If sanctions are applied, all assets of any named individuals would be frozen.

So far there are no signs of that taking place, and sources close to Abramovich insist he has done nothing that would make him liable to sanctions.

But even were it to happen, it is understood to be unlikely there would be ANY impact on Chelsea - at least in the short term.

Legal experts believe that the Government would agree an official “carve out” of Chelsea from any prospective actions to avoid significant impact on a club that employs hundreds of people and is supported by thousands.

That would mean Chelsea could continue as a business, including receiving future broadcast money from the Premier League and Uefa - and paying out wages to staff.

Without the “carve out”, things could get tricky, as it would be illegal for anybody to provide any benefit “directly or indirectly” to sanctioned individuals or their companies.

Abramovich has ploughed more than £1.5billion into the club since his 2003 takeover sparked two decades of unprecedented success including two Champions League triumphs and five Prem crowns.

Last year, the cost of Covid saw the Russian cough up a further £19.9million to balance the books.

But the return of full houses is worth around £3m in income for every game at Stamford Bridge, likely to add up to nearly £90m this season, on top of the TV and sponsorship revenues.

However, were Abramovich to be named - still felt to be less than likely - it would prevent further owner funding.

That COULD impact on Chelsea’s ability to spend money in the transfer market in the longer term, although the club’s recent dealings suggest they are likely to remain self-funders in a normal business environment.

Things, though, might be more testing for Everton if they were considering asking Usmanov for future investments.

Without a UK government licence - and the approval of pre-dated contract agreements - clubs would not be permitted to receive further funds from a sanctioned individual or from any company worldwide owned by that person.

 

 

[Vesper 29,013]

Roman Abramovich Has Sanction Insurance: A $2 Billion Loan To Chelsea FC

https://www.forbes.com/sites/daviddawkins/2022/02/24/roman-abramovich-has-sanction-insurance-a-2-billion-loan-to-Chelsea-fc/?sh=72a2e29f1be7

 

As pressure mounts to punish oligarchs for Russian President Vladimir Putin’s invasion of Ukraine, Roman Abramovich has a multibillion-dollar insurance policy should the U.K. come after his assets: his beloved Chelsea FC.

The club Abramovich bought for around $190 million in 2003, loved, nurtured and built into the 2021 UEFA Champions League winner was valued by Forbes at $3.2 billion last year. It owes the Russian billionaire, its majority owner, a staggering $2 billion. 

Kieran Maguire, a soccer-finance lecturer at the University of Liverpool, says it gives Abramovich no shortage of leverage in the U.K., depending on how deep sanctions might go. The worst-case scenario for Chelsea fans is now on the table. “If he wants to get his own back, he could call in the loan from Chelsea,” Maguire says. “That means Chelsea goes out of business, and Putin will be able to say, ‘Well, you started it.’”

The situation underscores how the unfolding crisis could impact the sports world, especially as many teams scramble to cut ties with Russia. The German Bundesliga’s FC Schalke 04 announced Thursday it was removing the logo of Russian energy giant Gazprom from its jerseys. Manchester United has yet to comment on its sponsorship with Russia’s biggest airline, Aeroflot, after sanctions prohibited the company from operating in the U.K. And possibly the most severe blow yet: UEFA is moving the Champions League final out of St. Petersburg. Expect more big-draw events to flee Russia.

Forbes calculates Abramovich’s fortune at $13.3 billion, mostly from steelmaking and metals. His name has repeatedly topped the list of oligarchs most likely to face the next round of U.K. sanctions on assets and business interests. Over the last week, Parliament has been forced to address the flow of Russian money into London as U.S. and European Union politicians say they fear loopholes in U.K. rules could derail their punitive measures against Russian aggression. 

The most significant attack came today from Labour’s Chris Bryant, who told the house–while he was protected from defamation lawsuits by parliamentary privilege–that Abramovich “should no longer be able to own a [soccer] club in this country,” adding that the U.K. “should be looking at seizing some of his assets, including his £152 million ($200 million) home.” A spokesperson for Abramovich didn’t immediately respond to requests for comment.

The latest annual accounts for Fordstam Ltd, Chelsea’s parent company, confirm a $2 billion loan “provided by the ultimate controlling party, Mr. R Abramovich.” Over the past year, Abramovich loaned Chelsea another $26 million even as the club lifted the Champions League trophy in June 2021. 

Maguire describes the loans as leverage against any significant attack on his assets. “The club does not have the resources to pay the money back,” Maguire says. “If Chelsea was sold, ultimately you sell for enterprise value. Whether this money goes in the form of equity or debt is irrelevant. But the club, potentially, could be on the hook here because he could demand the money back.” Maguire says Abramovich could effectively argue that his assets are frozen, he needs the money, “and then the club ceases to be.”

A potential Chelsea buyer would need deep pockets. The price paid for Newcastle United by a consortium led by Saudi Arabia's sovereign wealth fund—around $300 million—shows that there may be better value in smaller clubs that buyers can grow and shape themselves.

The Abramovich situation raises a broader question of whether the Premier League, or any top-tier European soccer organization, needs to rethink who it lets into its ownership ranks, according to Kenneth Cortsen, a sports economist at University College of Northern Denmark.

The Premier League’s Owners’ and Directors’ Test, for example, screens a number of factors, including a lack of criminal convictions, violations against a governing sports body, and financial viability. (Abramovich passes on all of them.) But rising player wages, the pressure of competing at the highest level and the impact of Covid-19 are just some of the monetary strains that have made soccer more vulnerable to questionable ownership. The circumstances behind the sale of Newcastle United, and now Chelsea, have prompted review from the league. The fallout from Russia’s war in Ukraine has only complicated matters. The Premier League declined to comment.

“Russia has not been a positive association for international sports in recent years, with systematic doping, sports washing and other incidents linked to negative reputational capital,” Cortsen says. “Why do we allow ownership of some of the most important sports assets, in the case of Chelsea, on U.K. soil to people with connections to, in this case, Russia, given everything that has happened?”

Of course, just because he could doesn’t mean Abramovich would cause the financial collapse of one of the most famous clubs in Europe, just to spite the U.K. government. However, he showed what he was capable of by aiding in the formation of the breakaway Super League before leading the exodus against it. The option to wreck his treasured Chelsea is still on the table. 

“People have talked about solidarity and protecting the European [soccer] pyramid,” Cortsen says. “But at the same time, they have allowed people to go for the money without really diving into, at an in-depth level, what that means.”

 

 

Edited February 25, 2022 by Vesper

[OneMoSalah 8,783]

14 hours ago, MoroccanBlue said:

Nothing has been proven though? 
 

There was suspicion/links that Roman was using political influence, and he received the necessary punishment of being barred from the UK until further notice. Now they want to seize his assets when they still haven’t proven anything, such as direct links to Putin?

Cries of desperation really. 

But if this document is legit then surely Roman admitting in a court of law that he ‘paid for political influence’ around 3 and a half years ago or whenever all but effectively give them a bone to chew on? 

Plus the links to Putin haven’t been proven? I am sure for the best part of 10-15 years particularly theyve been well documented and there has been multiple accounts of their relationship. Whether or not the links are as extreme as they have been claimed to be is another question but there 100% was a relationship there, go and look it up. It is well known and documented in 1999 that Roman interviewed personnel for cabinet positions under Putin when he first became Russian PM and also again, Roman was consulted regarding Putin’s successor in 2007. Roman also had  very well known ties to Boris Yeltsin who was PM prior to Putin.

[Fernando 6,484]

Western rulers are idiots. 

Like if sanctioning rich people is going to do anything to help the poor people in Ukraine that are going to be massacre by the Russian. 

This world is truly going from smart to dumber. 

[cosmicway 1,333]

It's the most ludicrous bottling up ever for America - allies.
UK is excused because they are a) spies, b) incompetent.

And it did not start with Biden. It started under Obama.
If you want Ukraine you send the 82nd. 
Putin would n't even dare.
If you don't want to send the 82nd then don't mess around.

Can you imagine NATO in the sixties operating like this:
All troops/airplanes/polaris subs back at home, if the Russkies invade our plan is a lame announcement to read in the UN.

Edited February 25, 2022 by cosmicway

[Blue Armour 4,311]

https://www.dailymail.co.uk/news/article-10551411/Sofia-Abramovich-posts-anti-Putin-message.html

[Blues Forever 1,232]

 

[Blues Forever 1,232]

 

[Fernando 6,484]

Yes it's a good buy for an American. 

We shall see what happens.

[ZAPHOD2319 4,516]

There are very few Americans or investment groups that can pay 2 billion.

[cosmicway 1,333]

We did not punish all the Germans in the war.
We did not punish Marlene Dietrich.
Only those connected with the regime should face sanctions. The one who owns PAOK Salonika for example (Savvidis) is one. Savvidis is a Russian, not of Greek origins despite the name (maybe some great grand father). He is 100% Putinist and a former member of the Russian Duma.
But how is Abramovich helping the Putin regime ?

 

[DDA 9,691]

7 hours ago, Fernando said:

Western rulers are idiots. 

Like if sanctioning rich people is going to do anything to help the poor people in Ukraine that are going to be massacre by the Russian. 

This world is truly going from smart to dumber. 

Bro, they know that. They just need to be seen as if they are doing something without engaging in military conflict which could escalate into something extremely worrying for everyone in Europe.

[cosmicway 1,333]

2 minutes ago, DDA said:

Bro, they know that. They just need to be seen as if they are doing something without engaging in military conflict which could escalate into something extremely worrying for everyone in Europe.

JFK called Krustchev's bluff.

[Fernando 6,484]

47 minutes ago, DDA said:

Bro, they know that. They just need to be seen as if they are doing something without engaging in military conflict which could escalate into something extremely worrying for everyone in Europe.

But this is what happen in WW2. Do nothing while the other gets ground. Russia will not stop in Ukraine. And now China will take Taiwan. 

7

[ZAPHOD2319 4,516]

China attempting to take Taiwan would be a direct fight with the US. We have been building up our troop levels there for a decade.

[Vesper 29,013]

3 hours ago, ZAPHOD2319 said:

There are very few Americans or investment groups that can pay 2 billion.

you are having a laugh, right?

[Vesper 29,013]

9 hours ago, cosmicway said:

It's the most ludicrous bottling up ever for America - allies.
UK is excused because they are a) spies, b) incompetent.

And it did not start with Biden. It started under Obama.
If you want Ukraine you send the 82nd. 
Putin would n't even dare.
If you don't want to send the 82nd then don't mess around.

Can you imagine NATO in the sixties operating like this:
All troops/airplanes/polaris subs back at home, if the Russkies invade our plan is a lame announcement to read in the UN.

one of the least informed posts I have seen in weeks

I also notice you completely ignore Trump, who not only was impeached over trying to get Ukraine to cook up false charges on Biden, but also blocked aid to them, and now is supporting and praising PUTIN

 

[ZAPHOD2319 4,516]

1 hour ago, Vesper said:

you are having a laugh, right?

No not at all. I know of one. The guy that tried to buy Arsenal. The fact that Newcastle just sold for 300M, from an investment aspect, committing 2B for a team is going to have a very low return on money, unless you hold that investment a very long time. So you really are back to how many Americans that are double digit billionaires would commit that much money? I can only think of one. They might be Americans that could pay 2B, but they would have to be very passionate about being an owner.