March 10, 2022

CHELSEA’S future has been plunged into doubt after Roman Abramovich was accused of being involved in funding and equipping Russia’s invasion of Ukraine and placed on the UK sanctions list. The move freezes Abramovich’s assets, including Chelsea.

And while the club will be allowed to continue to operate and play matches under a special licence, it can only do so under onerous conditions that also prevent the sale of the Blues.

SunSport attempts to explain what it all means: Are Chelsea able to keep playing? Yes, even though all other assets owned by Abramovich have been “frozen immediately” by the Government. Chelsea is one of those assets but “General Licence INT/2022/1327076” ensures the club can remain active.

The licence “allows Chelsea Football Club to undertake activities that would otherwise be prohibited by financial sanctions, meaning the club can fulfil its fixtures and carry out football business, without undermining the impact of sanctions”. What does that mean?

The club remains allowed transactions relating to the “reasonable costs necessary to host fixtures”, including providing security, catering and stewards. Wages of all employees can be met and paid, along with the costs of travelling to matches and pre-existing contractual payments regarding previous transfer and loan dealings. And what about the fans?

The advice from the Office of Financial Sanctions Implementation says that the sanctions order means Chelsea cannot take any more money “at the gate” or for future tickets that have not been purchased already. In simple terms, that allows season ticket holders or those who have already bought tickets for games to attend fixtures – but nobody else.

They can buy food and drink at the game, too. Hang on, that’s unfair – how can away fans attend for games where the tickets haven’t been on sale? Prem chiefs are already seeking a solution. The most likely solution would be for Chelsea to give away their away fan allocation – 3,000 tickets per match – to their opponents for free, with any proceeds of £30 per ticket sale going direct to the Premier League. That money might then be sent to Ukraine-based humanitarian relief. But the club Megastore – that’s been shut down?

Probably, although maybe not. The licence “permits parties who purchased or produced club merchandise prior to 10 March 2022 to continue selling that merchandise” but none of that money can go to Chelsea or, directly or indirectly, Abramovich. Unless there is a whole new bank account separate from the club for Megastore revenues – and that applies to ALL of the club’s High Street stores as well – they cannot trade with immediate effect. And the games due to be on TV – starting with Newcastle on Sunday?

The ongoing TV contracts, domestic and overseas, can continue as normal. The OFSI says broadcasters are “permitted” to screen games “under pre-existing arrangements” and that contractually-agreed broadcast payments “related to any fixtures” can be paid. But does that mean no prize money from the Prem – or Uefa? Again, a strict reading of the regulations could mean that happening as those payments would not be “related to any fixtures”. It’s going to be an interesting time for the Prem lawyers, too. Okay – but Abramovich was looking to sell. Is that out of the window? For now, yes. The freezing of Abramovich’s assets also preclude ANY financial dealings from which he might benefit. And a sale would mean money into his bank accounts, so that’s a no-no. That deadline of interest due on Tuesday has suddenly been rendered redundant. And how does it impact the summer? Chelsea would normally have been active in the market….is that off the agenda now? Not entirely clear – but, probably, yes. The sanctioning means, in the first place, that there can be no funding of the club’s activities from the owner or his related companies. But any player sales would, normally, mean money going into an Abramovich-owned entity, which would be breaking the Law. And it is equally an offence to receive money from an Abramovich company.Any bank or lawyer facilitating a transaction would be liable to prosecution, too.

Theoretically, it means Chelsea cannot offer any new contracts to current players either. Of course, the Premier League may seek to intervene to grant a further loophole at the end of the season. But, for now, Chelsea are in total transfer limbo.

By MARTIN LIPTON SunSport