Here's What Roman Abramovich's Sanctions Mean For Chelsea: Sale of the Club, Transfer and Other Things To Know About
Roman Abramovich was looking to sell the club amid Russia’s invasion of Ukraine. However, with the new sanctions, he can no longer go ahead with the sale until a new licence is obtained. Chelsea have been placed under a special operating licence and must now operate under certain restrictions.
The Russia-Ukraine crisis has had a huge impact on the sporting world as well. Multiple clubs and Russian athletes are not allowed to participate in several competitions. Even the Russian national team were booted from their FIFA World Cup qualifier against Poland. And recently, the UK government sanctioned several Russian oligarchs, freezing their assets and Chelsea owner Roman Abramovich was one of them. This restriction will have a huge impact on the club. Chelsea Owner Roman Abramovich’s UK Assets Frozen, Sale of Club on Hold.
Roman Abramovich was looking to sell the club amid Russia’s invasion of Ukraine. However, with the new sanctions, he can no longer go ahead with the sale until a new licence is obtained. Chelsea have been placed under a special operating licence and must now operate under certain restrictions. Let’s have a look at what Roman Abramovich’s sanctions mean for the club.
Sale of the Club
Roman Abramovich had put Chelsea on sale amid the ongoing Russia-Ukraine crisis. However, under the new licence, he can no longer sell the club. They will need a new licence for the sale to go through but the Abramovich will not be allowed to make any money off it, said a spokesman for Prime Minister Boris Johnson.
Payments
The club can continue to pay the salaries of the players and staff members. Fees related to daily activities can be paid but no money can be made available to new capital works.
Chelsea can still receive payments from other clubs for an existing loan or player sale arrangements. Television revenue and performance fees can still be paid to the club.
Transfers and Contracts
Chelsea can no longer sell or buy players if the arrangement wasn’t made prior to the sanctions. The club will also not be able to negotiate new deals for players who are out of contract in the summer.
Matchday
The travel budget for any match played by a team representing Chelsea has been restricted to £20,000. But they can pay fees of up to £500,000 for security, stewarding and so on for hosting any matchday.
The club can no longer sell new tickets. Only season ticket holders and fans that have purchased tickets prior to the sanction can attend the games.
Other Sanctions
Club merchandise purchased or produced prior to March 10 are permitted to sell existing stock but no funds or other financial benefits are made available to the club or Abramovich. The club are required to keep records of any activity permitted under the licence with a value exceeding £5,000 for a minimum of six years.
The current licence expires on May 31 but the treasury reserves the right to vary, revoke or suspend it at any time. The core principle of the licence is to deny access to revenue, beyond what the club needs to operate on a day-to-day basis.
(The above story first appeared on LatestLY on Mar 11, 2022 10:24 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).