An era in English football has come to an end as Roman Abramovich has finally sold Chelsea. The sale was reported on the night of May 6-7, 2022. The Russian businessman owned the club for nearly twenty years and transformed it into the most successful team in European football. However, due to sanctions pressure, he was compelled to leave the team.
KP Sport provides answers to the most important questions about the deal.
What was the selling price of Chelsea by Abramovich?
According to The World Street Journal, the deal was worth 4.3 billion British pounds, equivalent to 5.2 billion dollars. This makes Chelsea the most expensive team in history. The 4.3 billion will be split into two parts:
- £2.5bn will directly purchase Chelsea shares, but Abramovich will not receive them. The billions will be transferred to an account inaccessible to the former Russian owner, with promises to use the money for charitable purposes in Ukraine. However, there could be complexities, as the UK government has suggested redirecting some of this money to football development in their country.
- £1.75bn will be used by the new owners to invest in the development of Chelsea, including Stamford Bridge, the academy, the women’s team, and the Chelsea charitable foundation.
How much money did Abramovich lose from selling Chelsea?
The Russian billionaire purchased the English club in 2003 for £140m (or $190m). Subsequently, Abramovich heavily financed Chelsea, acquiring star players and hiring successful coaches. As a result, Chelsea began to win numerous trophies, including the English Premier League, the FA Cup, the Champions League, and the Club World Cup. Consequently, the value of Abramovich’s Chelsea increased by more than 25 times!
All of Abramovich's investments in Chelsea were documented as loans. As a result, the club currently owes him £1.6bn, which is held in a special fund. However, this did not prevent the businessman from incurring substantial losses. The British government strictly ensures that this money does not flow back to the Russian oligarch. Therefore, Abramovich’s losses will total 1.74 billion pounds – precisely the amount that the new owners will be investing in Chelsea's prosperity.
However, Abramovich had no choice but to sell the club. If the deal had not been completed, the team would not have received a license, leading to Chelsea's bankruptcy.
Who has purchased Chelsea?
Several potential buyers were considered, but the final decision was made by the British government. As a result, Chelsea was acquired by individuals who had expressed strong interest in the football club for several years. The new owners of the Blues are two Americans and one Swiss:
- Todd Boely, a 46-year-old American with a fortune of 4.5 billion dollars. He is the co-owner of the Los Angeles Dodgers baseball club and the Los Angeles Lakers basketball club. Boely has shown considerable interest in purchasing Chelsea for a number of years. He initially approached Abramovich with an offer in 2019, but the Russian businessman deemed $3 billion insufficient at the time.
- Mark Walter. American, 62 years old, worth $3.9 billion. He is Boeli’s long-term partner and co-owns the Dodgers baseball club with him.
- Hansjorg Wyss. Swiss, 86 years old. He accumulated his $5 billion wealth from pharmaceuticals and medical devices in the USA. He is a US citizen and resides in New York.
So, Chelsea and the “Russian” football club became American.
An entire era in English football has come to an end. Roman Abramovich has finally sold Chelsea. This was reported on the night of May 6-7, 2022. The Russian businessman owned the club for nearly two decades and transformed it into the most successful team in European football. But due to sanctions, he was compelled to leave the team.
KP Sport addresses the most crucial questions about the deal.
What was the selling price of Chelsea for Abramovich?
According to The World Street Journal, the deal was valued at 4.3 billion British pounds, equal to 5.2 billion dollars. Consequently, Chelsea has become the most expensive team in history. However, this 4.3 billion will be split into two parts:
- £2.5 billion will be directly used to purchase Chelsea shares. However, Abramovich himself will not receive them. The billions will be transferred to an account that the former Russian owner will not have access to. Then there are plans to utilize these funds for charitable purposes in Ukraine. Nevertheless, there could be complexities. Recently, the UK government suggested utilizing some of this money for the development of football in the country.
- £1.75 billion will be utilized by the new owners as an investment for Chelsea’s enhancement. They will be put into Stamford Bridge, the academy, the women’s team, and the Chelsea charitable foundation.
How much did Abramovich lose from selling Chelsea?
The Russian billionaire acquired the English club in 2003 for £140m (or $190m). Subsequently, Abramovich heavily funded Chelsea. He purchased star players, hired the most successful coaches… As a result, Chelsea began to consistently win trophies – the English Premier League, the FA Cup, the Champions League, the Club World Cup! … Abramovich’s Chelsea won nearly everything possible. And its value increased by more than 25 times!
All his contributions to Chelsea, Abramovich documented as loans. As a result, the club currently owes him £1.6 billion. Specifically, not to him, but to a special fund. However, this did not protect the businessman. Nevertheless, the British government closely monitors that this money does not go to the Russian oligarch. Consequently, Abramovich’s losses will total 1.74 billion pounds! This is precisely the amount that the new owners must invest in the prosperity of Chelsea.
However, Abramovich had no choice but to sell the club. If the deal had not been completed, the team would not have been granted a license, and Chelsea would have gone bankrupt.
Who acquired Chelsea?
There were multiple bidders for the acquisition. The final selection was made by the British government, and ultimately, Chelsea was acquired by those who had been expressing interest in the football club and circling around Abramovich for several years. The new owners of the Blues are two Americans and one Swiss:
- Todd Boely. 46-year-old American with a fortune of 4.5 billion dollars. Co-owner of the Los Angeles Dodgers baseball club, Los Angeles Lakers basketball club. Boeli seemed to want more than anyone else to buy Chelsea. He came to Abarmovchiu with an offer back in 2019, but then $3 billion did not suit the Russian businessman.
- Mark Walter. American, 62 years old, net worth $3.9 billion. Boeli’s longtime partner, co-owns the Dodgers baseball club with him.
- Hansjorg Wyss. Swiss, 86 years old. He made his 5 billion fortune on medicines and medical equipment in the USA. He is an American citizen and lives in New York.
Thus, Chelsea and the “Russian” football club became American.
