Chelsea Situation

Chelsea+Situation

Since Roman Abramovich was added to the UK’s sanctions list for his links to Vladimir Putin the Premier League & UK Government have worked extensively to ensure the club can continue to play football while ensuring the sanctions regime continues to be enforced. The club has been unable to sell tickets since owner Roman Abramovich was sanctioned by the government as part of its response to Russia’s invasion of Ukraine.

Who’s Going to Buy Chelsea FC
Due to the ongoing invasion of Ukraine, all assets have been seized by the government, and a group of potential buyers have emerged. These include Vivek Ranadive, Owner of the NBA team the Sacramento Kings, An Indian-born entrepreneur, and a bunch of other investors from around the world whose identities are expected to be confirmed in the coming days. People close to the bid have insisted that Joe Ricketts has no involvement in it, and have pointed to the family’s successful ownership of the team, having won the World Series for the first time in a century and completed a $1bn renovation of its home, Wrigley Field – one of the most historic sports arenas in the US.

There is still time to find a buyer and for them to stabilize the operation, especially if the deal were done by 31 May – when the club’s special license to carry on is due to expire. There remain plenty of interested parties, who can only see Chelsea’s price dropping as sponsors pull out or consider their associations; as revenue streams are hit.
Moreover, the government, which is effectively in charge of the sale – given the sanctions against Abramovich would not allow him to profit from it – have an interest in the transaction going through. They want Abramovich out for obvious reasons, including the optics, and they do not want to send Chelsea to the wall as they consider the club to be of cultural significance to the country. If Abramovich were to remain as the owner into next season, with sanctions biting ever deeper, that could happen.

A third group comprises the Ricketts family, which owns the Chicago Cubs, and the Citadel hedge fund billionaire Ken Griffin, with the US investment bank Lazard in talks to advise it. The four contenders vying to buy Chelsea Football Club will submit final bids on 11 April, paving the way for a prospective new owner to seek government permission to take over from Roman Abramovich by the end of next month.

How The Sanction Has Affected Chelsea
The sanctions have left Chelsea unable to sell match-day tickets, merchendise, and more importantly, they can’t purchase players and they can’t renegotiate with any of their players that are on the last year of their contracts. These players include the likes of Andreas Christensen, who has sealed a move to FC Barcelona, César Azpilicueta, who depending on the situation with who will take over the club, may go to FC Barcelona, and Antonio Rüdiger. These are just some of the players that if they can’t keep, could cause big trouble in the defense of Chelsea. The only fans that can go to matches are season ticket holders. Also, Chelsea was limited on their traveling expenses to 20,000 pounds which is $ 26,330. Another major blow to Chelsea was that their main sponsor “3” (UK Cell Internet Provider) left them. Some of the statements that Chelsea came out with are “However, the UK Government has issued a general license that permits Chelsea FC to continue certain activities.” “This will include seeking permission for the license to be amended in order to allow the Club to operate as normal as possible.” (SOURCE)

What will happen to the future of Chelsea
As of right now, the future of Chelsea Football Club is very uncertain, but there are reasons to be optimistic. The sale of Chelsea FC will not be completed until May 31, 2022. There are great potential buyers that will massively benefit the club with the cash that they can bring in but cash might not be the problem with club generating around 700 Million Euros Annually, the problem could be the personality of the new owner because he might not be as lavish or as willing to spend big money on players and on the club as Roman Abrovacich might be so they will have to take that into consideration as well.