Roman Abramovich to Face Drastic Action Over Chelsea Sale Funds
The government of the United Kingdom is preparing to take legal action against former Chelsea owner Roman Abramovich over the release of the funds from his sale of the club in 2022.
Abramovich was sanctioned by the U.K. government in 2022 amid allegations of his links to Russian president Vladimir Putin following the invasion of Ukraine. Rather than be removed as Chelsea owner, Abramovich agreed to sell the club and allow the funds to be used to support the victims of the conflict.
A consortium led by Todd Boehly and Clearlake Capital paid a total of $5.2 billion (£4.25 billion) to buy Chelsea, with $3.2 billion the final sale price and a pledge of $2 billion in investment over the next 10 years.
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Since then, that $3.2 billion has remained frozen in a U.K. bank account controlled by Fordstam, Abramovich’s company, with all parties yet to agree on the correct use of the funds. Now, the government is looking to sue the former Blues owner to command access to the account.
A government spokesperson said: “We gave Roman Abramovich his last chance to do the right thing. Once again, he has failed to make the donation he committed to.
“We will now take further steps to ensure that the promise he made at the time of the Chelsea sale is kept.”
Why Have the Funds Not Been Released Yet?
The delay stems from the wording of the agreement between Abramovich and the U.K. government in 2022.
While both parties want the funds to be used to support the victims of the war, the exact specifics of that definition have been the subject of fierce debate. The government want to send the entire sum to Ukraine, but Abramovich has argued that there are victims of the conflict outside of Ukraine, including in his native Russia.
Legal action was touted as the likely conclusion to this saga over 12 months ago and another year of failed negotiations appear to have left the U.K. government believing there is no alternative.
Further adding to the confusion are reports of an investigation from authorities in Jersey, where some of Abramovich’s money was managed.
Much of Abramovich’s investment in Chelsea was funded through a series of off-shore loans, including over $2 billion interest-free from one of his companies in Jersey, Camberley International Investments.
Abramovich is facing allegations of corruption and money-laundering—accusations he strongly denies—and officials are investigating whether the funds raised through his sale of Chelsea in 2022 are actually the product of crime.
Recent accounts, Fordstam noted: “It remains unclear as to what steps can lawfully be taken in relation to the loan while that investigation remains ongoing.”
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