Roman Abramovich's £726m loan to Fordstam

[Badboy 1,526]

http://theoriginalwinger.com/2010-05-19-Chelsea-is-debt-free-owes-roman-abromovich-726m

The club remains ostensibly debt-free but Roman Abramovich maintains the right to call in the millions of pounds he is owed. Abramovich channelled his loans to the club by loaning money to Chelsea Limited, who then loaned it on to Chelsea FC plc, which runs the club.

More detail after the jump….

It is true that the loans from the holding company to Chelsea FC plc were fully converted to shares last year. However Abramovich’s loan to Chelsea Limited, the holding company which owns Chelsea FC plc, was not. That loan remains owing; in fact it increased from £701m, because Abramovich loaned another £25m in a year when Chelsea’s extravagant spending, and the dismissal of Luiz Felipe Scolari and his coaching team, produced losses of £47m.

The accounts of Chelsea Limited (whose name was changed during the year to Fordstam Limited), show that loan still outstanding: £726m, owed to Abramovich.

A spokesman for the club confirmed that yesterday: “Recapitalisation of loans happened at the level of Chelsea FC plc, not the holding company (Fordstam), therefore making the football club debt free.

The loan is interest free, but it is repayable if Abramovich gives 18 months’ notice. The Russian could still demand the money back some day, either if the club is making a profit, or if he were to sell it. He has not, in fact, written off the huge loans he has made on his Chelsea adventure.

[Badboy 1,526]

We are not as carefree as what i thought we were:(, roman has loaned money to the holding company that owns Chelsea fc. Then the holding company has loaned it to Chelsea fc, what a publicity stunt by roman and his team. Last year when we heard that we were debt free because roman turned it into shares was just a bogus turn. I really think we could be in trouble in the future.

[We Hate Scouse 10,261]

http://www.chelseafc.com/page/LatestNews/0,,10268~2055740,00.html

CLUB STATEMENT ON FINANCE

Posted on: Wed 19 May 2010

Chelsea Football Club has released a statement today (Wednesday) following media stories on club finance.

The statement reads:

'Contrary to media reports today, other than a small residual balance Chelsea Football Club and our parent company Chelsea FC plc are debt free and do not owe any money to our shareholder (Fordstam Ltd). Neither do we owe any money to Roman Abramovich.'

Yes we are!

Edited May 19, 2010 by we hate scouse

[Badboy 1,526]

http://www.chelseafc...ge/LatestNews/0,,10268~2055740,00.html

Yes we are!

Thanks very much "we hate scouse" can someone close this embarrassing thread please ?

BLUELION !!!!!!!!!!!!!!!!!!!!!!!!!

[warnie_666 1,081]

The media cant seem to stand us being debt free when clubs with "histories" are riddled with it and hence a poor attempt by the journalist to try and link the debt of Fordstam to Chelsea FC by more of a "Complex Structure".

F A I L!!!!

[Wilson 358]

So are we debt free or not? Yes, I am stupid lol someone please tell me are we or not?

[boshman 1,073]

So are we debt free or not? Yes, I am stupid lol someone please tell me are we or not?

We're debt free. Its just the papers chattin shit about us as they always do.

[BlueLion. 21,491]

I'll close this one then