Selling EPL Chelsea for 6.7 trillion won No UK government approval

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The key is the structure of owner Abramovich’s inability to collect profits
End of May, government operating license expires, registration for next season closes

The English Premier League (EPL) club, Chelsea, is on the verge of being sold.

On the 16th (local time), British media such as the BBC and The Times reported that the British government did not approve the request for the acquisition of Todd Boley, co-owner of the Los Angeles Dodgers in the US Major League Baseball (MLB).

The British government is trying to come up with a legal mechanism to prevent the current Chelsea owner, Russian tycoon Roman Abramovich, from collecting the proceeds from the sale. Conversely, Abramovich argues that there is no need to do so. Abramovich is currently on the Western sanctions list following the Russian invasion of Ukraine.

Abramović announced the sale of Chelsea in early March, and a buyer was decided earlier this month. The terms of the acquisition were a £2.5 billion stock acquisition and £1.75 billion investment in the construction of the stadium. One of the conditions was to invest in women’s soccer and the operation of the academy.

Abramovich has consistently expressed his intention to donate the proceeds of the sale to a charitable foundation for the victims of Ukraine. Accordingly, the British government is proposing a plan to store the sale proceeds in an escrow account and move it when the foundation is established.

But Chelsea’s £1.6 billion debt to Abramovic is a stumbling block. Abramovich said he would not accept the money, but the British government is saying it will come up with a legal mechanism for this. It is construed as an attempt to obtain a legal guarantee that the amount will be donated. Abramovich said there was no need for that.

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Meanwhile, the sale of Chelsea has to be finalized by May 31. Chelsea have been operating under a special government license since Abramović was sanctioned, as the license expires on this day. It is also the deadline for registration for next season’s European competition.

[디지털뉴스부]

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