Roman Abramovich Thread

[NikkiCFC 8,286]

 

[NikkiCFC 8,286]

 

[Vesper 30,085]

Roman Abramovich spared Russia sanctions despite MP's claim he should not be allowed to own Chelsea

Plus, why Chelsea would be left with a £1.5bn headache if Abramovich's flow of riches is stemmed

https://www.telegraph.co.uk/football/2022/02/24/roman-abramovich-should-not-allowed-Chelsea-says-labour-mp-chris/

Premier League billionaires Roman Abramovich and Alisher Usmanov on Thursday night escaped British sanctions as Boris Johnson froze hundreds of British-based Russian assets in retaliation for the invasion of Ukraine. 

Calls in Parliament for Abramovich to dramatically lose his ownership of Chelsea had been raised earlier, with Chris Bryant, the Labour MP, citing a document linking him with “corrupt activity”. 

Ministers are still “looking at sanctioning more complex individual cases”, sources said on Thursday, but there was no mention of Abramovich or the Everton investor in the Prime Minister’s initial list. Usmanov does face United States Treasury sanctions.

Elsewhere, Vladimir Putin’s invasion of Ukraine sparked havoc for European sport, including: 

• The Champions League final was finally stripped from St Petersburg, but Wembley is ruled out of the running for May
• Sebastian Vettel and Max Verstappen led a drivers boycott, calling on Formula One to abandon the Russian Grand Prix
• Poland, Sweden and the Czech Republic said Russia should not be allowed to host World Cup qualifiers next month
• Ukrainian domestic sport was suspended after the government declared martial law and a 30-day state of emergency.

The Prime Minister had hit Russia with what he said was its “largest and most severe” package of sanctions hours after Bryant had prompted speculation that Abramovich could face action. 

Five oligarchs including Russia’s youngest billionaire were on the list of more than 100 who face a ban from travel to the UK, the freezing of their assets and restrictions barring any UK firm doing business with them. 

No reasons were given by Government sources for the exclusion of Abramovich, who had been named by Bryant earlier as being linked in a 2019 Home Office document to Mr Putin’s Government and “corrupt activity and practice.” 

Using parliamentary privilege, Bryant told MPs: ‘An example of this is Abramovich admitting in court proceedings that he paid for political influence. Therefore HMG is focused on ensuring individuals linked to illicit finance and malign activity are unable to base themselves in the UK and will use the relevant tools at its disposal, including immigration powers to prevent this’.” 

Bryant added: “That is nearly three years ago and yet remarkably little has been done in relation. Surely Mr Abramovich should no longer be able to own a football club in this country? Surely we should be looking at seizing some of his assets including his £152 million home? And making sure that other people who have had Tier 1 Visas like this are not engaged in malign activity?” 

It is understood the Government is preparing a further sanctions list of Russian oligarchs, banks and companies but refused to “speculate” on future names. On Tuesday, another Labour veteran, Margaret Hodge, had cited Abramovich and Usmanov as she said current powers against Russia were too “narrow”. 

Since 2018, when Abramovich withdrew his UK visa application, he has acquired both Israeli and Portuguese citizenship. He attended a match at Stamford Bridge for the first time in three years in November. 

The Chelsea owner, now 55, has repeatedly refuted any suggestion that he has direct links with Putin. Last December, he settled a high-profile libel lawsuit brought against HarperCollins after claiming that a book, Putin’s People, contained “false and defamatory” statements regarding the 2003 acquisition of Chelsea. 

In contrast, Usmanov has a £30 million first-refusal agreement in place for the naming rights at Everton’s new Bramley-Moor Dock stadium, said in 2010: “I am proud that I know Putin, and the fact that everybody does not like him is not Putin’s problem.” 

In 2011 the High Court heard that Mr Abramovich had used the well-connected oligarch Boris Berezovsky as his “political godfather” to help him conduct business deals in a country where police were “corrupt” and courts “open to manipulation”. 

The court heard the Chelsea owner believed it was his “moral obligation” to hand Mr Berezovsky £1.3billion to fund his lavish lifestyle. 

Bill Browder, an Anglo-American financier who has been declared Putin’s public enemy number one, said: “Why do these top Russian oligarchs continue to be untouched perplexes me.” 

---

Chelsea's billionaire owner tipped to find a way to continue investing in club

Analysis by Tom Morgan

Roman Abramovich's private jet touched down on the tarmac of his native Moscow on Thursday night. The question for Chelsea now is whether his long-term future as owner remains on firm ground. 

There was no confirmation the secretive 55-year-old was actually on board the Boeing 787-8 Dreamliner that flight trackers showed leaving Monaco, where his superyacht is also often docked. 

Yet if some MPs now get their way, that flight will be just the first of many Abramovich assets sent packing from Western Europe due to claims about his supposed association with Vladimir Putin which he has always refuted.

To the relief of associates and Chelsea fans alike, he was spared inclusion on Boris Johnson's list of "100 new entities and individuals" who "we’ll be imposing asset freezes on". 

However, two days after Labour's Margaret Hodge named him among those to "escape" a new sanction approach that, she said, was "too narrow", another party veteran has launched a fresh attack. 

Using parliamentary privilege, Chris Bryant told MPs he had a leaked Home Office document which he said evidenced concerns about alleged links to corruption. "Surely Mr Abramovich should no longer be able to own a football club in this country," he said. "Surely we should be looking at seizing some of his assets including his £152m home?" 

Replying to Bryant, senior minister Mark Spencer had said the Government was already taking "very strong action against high-profile Russian individuals who are of concern". But for Chelsea supporters the outburst was the clearest signal yet that their club may yet become collateral damage as the West responds to Russia's war with sanctions rather than bullets. 

Abramovich has repeatedly distanced himself from direct links with the Putin regime, and associates insist Chelsea would be sheltered even he was added to any list. However, as Government sources warned on Thursday night that "there will be more" sanctions to come", any attempts at all to disrupt the heavy flow of a pipeline of Russian cash into Stamford Bridge will spark alarm. 

A club fanbase which regular sings "we've won it all" would have won virtually none of it without more than £1.5billion worth of loans which have been pumped into the club by Abramovich since he purchased the club in 2003. 

Matchday revenue is dwarfed by some of their rivals largely due to his decision in 2018 to shelve a £1billion stadium redevelopment. With no new 60,000-seater venue to rely on, the European champions continue to regularly dip into funds which he pays into the club and then extracts when TV money and transfer fees come through. 

'I don't think Chelsea will be negatively impacted'

Annual accounts for Fordstam Ltd, Chelsea’s parent company, detail in stark terms how the club remains heavily reliant on the Russian, even after a remarkable era of success both on the pitch and in the transfer market. 

Last season, Abramovich injected around £150million and withdrew around £130million to end the year loaning the club an overall £19.9million, and taking  the total related-party loans to £1.514 billion. Intriguingly, the loans are due to be repaid to Camberley International Investments Ltd, a British Virgin Island entity. It is certain that separate fund is owned by Abramovich, but more detail is elusive given the source's offshore status.

Equally, as the loans are from the owner himself and interest free, Chelsea can refer to themselves as effectively debt free, because if Abramovich sold the club he would have to repay himself from the proceeds. This year accounts are looking rosy, with a healthy profit expected on player sales for this season. Fordstam accounts detail three players were signed in the summer for an initial outlay of £109.7million and 13 players were sold for £103.7million.

Kieran Maguire, a football finance author and lecturer at Liverpool University, reassured Chelsea fans that they will not be left in a situation where the players are not paid, whatever the Government decides to do.

 "I don't think Chelsea will be negatively impacted because Roman Abramovich will have his assets and his cash in a variety of locations around the world," Maguire told Telegraph Sport. 

"He's not a British citizen, he can invest money into Chelsea, indirectly through companies such as Camberley investments, so I don't see how that could be prevented in the future. I think he is a very astute individual and will do the do the utmost to minimise risk in relation to his wealth and investments and having connections with offshore companies is one way of achieving that."

The Chelsea owner's relationship with the UK had appeared to be softening since he withdrew his visa application in 2018. He attended Stamford Bridge for the first time in three years in November and has been praised for his anti-Semitism campaigning.

But the Government will be well aware that Abramovich remains as litigious as ever over any suggestion he is influenced by the Kremlin. Last December, he settled a high-profile libel lawsuit brought against HarperCollins after claiming that a book, Putin’s People, contained “false and defamatory” statements claiming the Russian leader ordered the Chelsea purchase.

While there was much speculation on Thursday as one of Abramovich's planes took flight back to Russia, Chelsea can be confident their £10billion man, for now, would use every asset at his disposal to ensure he is going nowhere.

[Vesper 30,085]

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 30,085]

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 8,883]

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 6,585]

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 4,436]

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

[Blues Forever 1,232]

 

[Blues Forever 1,232]

 

[Fernando 6,585]

Yes it's a good buy for an American. 

We shall see what happens.

[ZAPHOD2319 4,801]

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 9,924]

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.