Todd Boehly’s Chelsea takeover is in jeopardy due to government fears over where the proceeds will go. There is an “alarm” in Whitehall that the takeover could be “timed out” if deadlines are not met, report the BBC.
Chelsea recently agreed a £4.25 billion deal with a private-equity-funded consortium led by US investor Todd Boehly, co-owner of the baseball team LA dodgers. Roman Abramovich was hit with an asset freeze in March following his ties with Russian President Vladimir Putin and was forced to sell the club.
Chelsea Takeover Deal in Turmoil After Government Concerns
Dancing with the Devil
The Russian-born billionaire has been described by the government as a “pro-Kremlin oligarch”. A senior Whitehall source revealed Abramovich could be willing to let Chelsea go under due to the fact a sale structure could not be agreed upon. There is government fear that a significant portion of the fees will have to go to Jersey-registered Camberley International Investments because Chelsea’s parent company Fordstam have a debt of £1.6 billion to Camberley. This wouldn’t align with the current sanctions placed on Abramovich.
Sources close to Abramovich say that the billionaire’s intentions to gift the proceeds to charity have not changed. There are no concerns as to whether Boehly’s group are suitable to take over Chelsea. Chelsea are currently operating under a special license until May 31.
Cutting it Fine
Chelsea, the Government, Todd Boehly, and Roman Abramovich have until May 31 to agree a sale. In the first week of June, the Premier League will meet to finalise the composition and regulations for the 2022/23 season. If Chelsea do not have owners by then, they could be removed from England’s top division.
A government source told the BBC, “There are deadlines at the end of this month and the start of June, which would either see the club booted out of European competition or the Premier League entirely. But a good chunk of the sale needs to be done this week or next.”
Time is ticking for the future of Chelsea Football Club. There are a few big weeks ahead for everyone involved.