Sanctions by the British government in response to the Russia-Ukraine war have put Chelsea shaky and ripened the moment for the Club’s sale.
Pending a new owner, Chelsea remains under the receivership of the UK government. Players have remained strong-willed and fans feel disenfranchised but how will these disruptions affect the club?
Collaterally damaged
With the crackdown by the UK government on Russian Oligarch, Roman Abramovich saw his assets frozen and it meant the most to soccer’s fan base. Roman’s most valued property, the premier league club Chelsea F.C valued at $3 billion, has been confiscated. Although he had conceded to give up the club in early March, the sale process was put on hold. The blanket sanction crippled all revenue streams for the Club — no more ticket sales, merchandise stores were closed, bank accounts frozen, withdrawal of sponsorships, and player transfers or contract signings put to a cessation. Chelsea’s proprietor, Roman Abramovich lost his place on the club’s directors and only a special government license will keep the club crawling on its knees till May 31.
Private Club turns into a Government institution
By virtue of the license, Chelsea can be considered nationalized and falls under the UK government’s Ministry of Digital, Culture, Media & Sport. Chelsea Football Club lost its status as a monied club under the patronage of a billionaire owner to a cash-strapped parastatal dependent on government goodwill.
Already, the British government has downscaled expenses for operations like travel to away matches. Whether and how the government pays wages if the team exhausts its cash reserves is uncertain. Buyers well-heeled with money – dirty or otherwise – continue presenting their bids before the Friday 18 window is closed. The latest so far is Saudi Research and Media Group, a Riyadh media and publishing company, with a $3.5 billion offer. It is close to the $4 billion price asking price. Another hopeful is Todd Boehly’s group ($2.8 billion). At this point, a handover is necessary and the only way out. The earlier it’s done, the better. But, for whoever buys the club, it might be hard to have a beholden owner like Roman Abramovic.
Fans and Players
The sanctions bears most on its stadium fans and will hurt team motivation. Even so, Chelsea has maintained the spirited fight for the league, and has not recorded any loss since this disruption started – it won over Premier League sides Norwich City and Newcastle United.
The test for the team’s morale was yesternight’s (16.03.2022) UEFA champions league round of sixteen where it played Lille and Saturday’s (19.03.2022) FA Cup quarterfinal against Middlesbrough. It is a wait-and-see.
