Roman Abramovich is obliged to pass on only the £987million net proceeds from the sale of Chelsea to a charitable foundation rather than the full £2.35billion he received from the club’s new owners, the latest accounts of his company have revealed.
Fordstam Ltd’s accounts for the year ending June 2023 state that the company owes £1.4billion to a Jersey-registered company called Camberley International Investments which needs to be repaid from the Chelsea cash. That is a related party company that was used by Abramovich to loan money to Chelsea during his two decades owning the club.
“The owner of Fordstam Ltd, Roman Abramovich, intends to donate the net proceeds from the sale of the club, after allowing for other balance sheet items, to a charitable foundation,” the accounts read.
It adds that the “net gain on sale” of the club was £987million. All the £2.35billion remains frozen in Fordstam’s bank account as Abramovich was sanctioned by the British government following Russia’s invasion of Ukraine, but earned £63million in the year ending June 2023.
Abramovich may decide to donate the full amount from the Chelsea sale, but in terms of Fordstam’s finances the £1.4billion loan to Camberley must be settled.
This week The Times reported that Abramovich’s lawyers have told the government that the proceeds from the sale of Chelsea belong to him entirely and that he will fight any legal attempt to confiscate the funds.
There is a dispute over how the money should be spent. Abramovich wants the money to help all victims of the war in Ukraine, while the government insists it can only be spent inside Ukraine.
In December Sir Keir Starmer threatened to seize the £2.35billion proceeds if Abramovich does not agree, by March 17, to release the money.
Fordstam’s accounts confirm that Blueco 22 Ltd, the consortium that bought Chelsea, agreed a purchase price of £2.5billion but held back £150million until May 2027 to cover any proceedings.
Chelsea have been hit with 74 charges by the FA alleging that undeclared payments were made to agents and other intermediaries relating to player transfers during the period of Abramovich’s ownership and any fines that result would be deducted from the £150million.
Fordstam’s accounts confirm:
• The total sale price to Blueco 22 was £2.5416billion, “consisting of £2.35billion payment received, £150million holdback amount and £41.6million transaction fees”.
• Interest in the year was £62.887million “as the cash balance from the sale of Chelsea FC Holdings Ltd and its subsidiaries was held for a full year”.
• That £1.24million was spent in the financial year setting up a structure to handle the donation of the proceeds of the Chelsea sale to a charitable foundation, plus other legal and audit fees.
• The net gain on sale amounts to £987million, which does not include any of the £150million holdback amount as Fordstam has “doubts over its full recoverability”.
It adds: “The holdback reduction amount is defined as an amount of all losses incurred by any member of the Blueco 22 Ltd during the period from acquisition date to the payment due date resulting from any proceeding in relation to events which took place before the acquisition date, up to the value of £150million.”
The accounts add that Camberley International Investments’s funds “may be affected by an ongoing criminal investigation initiated by the Attorney General of Jersey, into whether certain assets — potentially including the net proceeds — amount to the proceeds of crime”. Abramovich is vigorously contesting the Jersey court action.
“It remains unclear as to what steps can lawfully be taken in relation to the loan while that investigation remains ongoing,” the accounts add.
Chelsea are awaiting the outcome of a disciplinary hearing into 74 charges of breaching agents regulations, including making a secret off-the-books payment to Eden Hazard’s former agent. Chelsea are hopeful of receiving only a fine as they self-reported the payments after discovering them during the takeover in 2022.
The commission could impose tougher sanctions including a transfer ban or points deduction, though Chelsea would almost certainly appeal against any sporting sanction.
