- The sale of
Chelsea FC has hit a new roadblock. - Sky News reports Russian owner
Roman Abramovich has yet to provide assurances the sale proceeds will go to charity.
The UK government is concerned that the upcoming $5.3 billion takeover of Chelsea FC could collapse because Russian owner Roman Abramovich is allegedly refusing to accept a new sale structure proposed by ministers, reports Sky News.
Abramovich put Chelsea up for sale shortly after the Russian invasion of Ukraine, however the oligarch was then slapped with sanctions preventing him from profiting from the sale.
Chelsea announced earlier this month that a consortium led by LA Dodgers co-owner Todd Boehly had agreed to purchase the club for an initial $3.1 billion, with spending assurances of another $2.2 billion over 10 years.
Abramovich insisted the proceeds would go to a charity benefiting victims of the war in Ukraine.
However, according to several outlets, people close to the sale have now said that ministers are yet to receive assurances from Abramovich about the destination of the money, throwing into doubt that the sale of the club can be completed by the end of the month, which is when the club's special operating license from the government expires.
The government is proposing a two-stage sale process in which the money from the sale to Boehly's group would go into an escrow account, where it would be held until officials are satisfied the funds will go to charity.
But Westminster sources have said that Abramovich instead first wants Chelsea's parent company, Fordstam Ltd, to repay a $2 billion loan it owes to Camberley International Investments, a Jersey-based company.
According to the Financial Times, Camberley International Investments has links to Abramovich.
"Two big sticking points remain – where exactly the proceeds of the sale will be held, and what legal guarantees government will be given about the money going to good causes," said a government source, according to Sportsmail.
"A deal which would allow the cash to be diverted during the deal would be a breach of sanctions and is seen as a red line for ministers."
Chelsea's special operating license expires on May 31, with any deal requiring sign-off from ministers and the UK's football authorities.
Without a deal being finalized before the end of the month, Sky News reports that Chelsea could be excluded from club competitions next season or even face administration.
A spokesperson for Abramovich has previously denied claims that the billionaire wants to pay off his loan to Chelsea to Camberley International Investments.
Chelsea declined to comment when contacted by Insider.
A spokesperson for Abramovich did not immediately reply to Insider's request for comment.