Skip to main content

New threats to Chelsea sale

A series of further complications have arisen in the sale of Chelsea: the late intervention by Sir Jim Ratcliffe; doubts about the Abramovich loan; and the retention of existing key figures associated with Abramovich in club management.  The special licence from the Government expires on May 31st and a failure to secure a deal by then could complicate transfers for next season.

Sir Jim Ratcliffe has undertaken a PR initiative by giving an interview to BBC TV from Madrid (wonder why he was there?}  He insists that he has had 'productive' discussions with government (Nadine Dorries?) on his late bid.

He once again points out that his is the only 'British' bid which is one way of characterising residence in the tax exile haven of Monaco.  He said his bid was late because one had to think carefully about acquiring a 'national asset' like Chelsea.  Asked why he did not try to buy the club he had originally supported, Manchester United, he said it was not for sale.

Roman Abramovich said that the £1.5bn debt owed to him by the club's parent company could be waived and the proceeds of the sale given to victims of the war in Ukraine.  However, forgiving the debt would create a hefty tax bill for the club.   There are difficulties about how the money could be repaid while remaining frozen and then paid to charity.

Investment bank Raine has apparently signalled to bidders that Chelsea chair Bruce Buck and director Maria Granovskaia (a Russian-Canadian) should be offered an option to stay on, although it has denied signalling or telling bidders that keeping the pair would strengthen their bid.   According to the Financial Times, the leading Boehly consortium has agreed to their retention, and it is believed that the other two bidders have done so as well, although they declined to comment.

This news has caused some alarm in political circles.  Julian Knight, chair of the Commons committee that covers sport, told the Pink 'Un: 'Any continuity with the Abramovich regime at Chelsea is certainly an unsettling development.'

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more