Chelsea FC redevelopment threatened as sale stalls
The £4.25bn sale of Chelsea FC – and its £1bn redevelopment – has been jeopardised by Roman Abramovich, according to government sources.
The Russian tycoon has been accused of insisting that his debt is repaid, which would prevent the sale from going through.
It had been proposed that the £2.6bn proceeds from the sale to the Todd Boehly-led group go into an escrow account until the government is satisfied it can go to a foundation to help victims of the war in Ukraine.
The £4.25bn sale of Chelsea FC – and its £1bn redevelopment – has been jeopardised by Roman Abramovich, according to government sources.
The Russian tycoon has been accused of insisting that his debt is repaid, which would prevent the sale from going through.
It had been proposed that the £2.6bn proceeds from the sale to the Todd Boehly-led group go into an escrow account until the government is satisfied it can go to a foundation to help victims of the war in Ukraine.
But, according to government sources, the Russian billionaire is refusing to accept a sale structure proposed by Treasury officials, instead insisting that the £1.6bn debt from Chelsea’s parent company, Fordstam, to the Jersey-registered Camberley International Investments has to be repaid first – it would be frozen, but the money would then go to the foundation.
However, this is being contested by sources close to Abramovich and the sale process. One said the use of a holding account was in fact Chelsea’s suggestion, insisting there was no need to pay the money to Camberley.
Abramovich’s assets, including his £200m property portfolio, were frozen by the UK government in March in response to Russia’s invasion of Ukraine.
Boehly, who is backed by US investment firm Clearlake Capital and other investors, is committing a further £1.75bn to redevelop and invest in the club on top of the £2.5bn acquisition price.
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