Chelsea Fucked?

[Squiggles]

Seems mad the club can command such a fee when they don't own the ground and there's a panic rush to sell. How does the owner being able to write off 1.5 billion of investment make them compatible with FFP? Why has he been given time to get his shit in order?

The whole thing stinks.

 

[bluebell]

Putin is reported to be worth £560bn

Give his IP address and bank details to the scammer in Mumbai.

It would achieve more than the Tory Government will ever do.. 😉

Where is the evidence for this net worth? If it was one of the Arab Royalty, I could believe it. Its very grey what I'd their's and what belong's to the state.

 

[Hyena]

Seems mad the club can command such a fee when they don't own the ground and there's a panic rush to sell. How does the owner being able to write off 1.5 billion of investment make them compatible with FFP? Why has he been given time to get his shit in order?

The whole thing stinks.

Why wouldn't it?

They are one of the most profitable, and well supported clubs in the top league in the world, located in a high income area, with 174-year lease on Stamford Bridge and are about to have £1.5 billion in debt written off at the snap of a finger. And the club has two European titles, just as many as Nottingham Forest.

It's the deal of a century for any aspiring club owner, tbh.

 

[Squiggles]

Why wouldn't it?

They are one of the most profitable, and well supported clubs in the top league in the world, located in a high income area, with 174-year lease on Stamford Bridge and are about to have £1.5 billion in debt written off at the snap of a finger. And the club has two European titles, just as many as Nottingham Forest.

It's the deal of a century for any aspiring club owner, tbh.

They're profitable because Roman writes everything off: Chelsea’s accounts state they are “reliant on Fordstam Limited for its continued financial support”. The company is/was owned by Roman Abramovich, and has indicated it will continue to support the club “for the foreseeable future”.

Mr Bean could guide a company to profit in similar circumstances.

 

[737Max]

They're profitable because Roman writes everything off: Chelsea’s accounts state they are “reliant on Fordstam Limited for its continued financial support”. The company is/was owned by Roman Abramovich, and has indicated it will continue to support the club “for the foreseeable future”.

Mr Bean could guide a company to profit in similar circumstances.

Please get Mr Bean to take over but without the support of Fordstam. Please I beg you

 

[rurikbird]

I've read that before.. however, others have said that he was cosy with Yeltsin, and he was one of the oligarchs who recommended Putin as a successor.

However, since then there have been sporadic meetings and gifts and silence in the media.

We will never know for sure.

I don't understand how this is even a question. A Russian oligarch that is not friendly to Putin would never be allowed to become or stay an oligarch, simple as that.

 

[rubans]

What’s the difference between net profit and net proceeds even? Sounds BS? [mention]Beamrider [/mention] any ideas?

 

[737Max]

It's quite clear that when Roman announced on Saturday night that the charitable trust were going to run the club it was his way of trying to stay in power, keeping his asset and everything going hunky dory. Obviously with the sanctions and noose turning on oligarchs around the world he's shit the bed because the threat of assets being taken is now a serious one, he's got to sell up everything and fast before the government take it. The whole net proceeds comment is vague as fuck and he knows that. He's already writing off £1.5bn owed to him, who in their normal mind does that? Granted he's still going to make a profit on the £140m he paid but now he's so desperate to sell the lowball offers are going to be made for sure now he's shown his hand to everyone.

 

[The Nomad]

China blocking all premier league games this weekend.

Froggy will have to find an illegal stream.

 

[Donavan Ried]

Where is the evidence for this net worth? If it was one of the Arab Royalty, I could believe it. Its very grey what I'd their's and what belong's to the state.

There is no real evidence a such... It is just something that is widely regarded as being true by the media (Papers, TV and radio)

Lease you for get Russia/Putin has been selling both Oil and Gas for decades and that's not to mention weapons to his middle east allies A most of that money goes in to his pockets.
So by that reckoning he is up there with the Arab Royalty Money wise

 

[keniget]

China blocking all premier league games this weekend.

Froggy will have to find an illegal stream.

Why?

 

[The Nomad]

Why?

Apparently every game will have a solidarity thing for Ukraine.

China are pissed off and said they won't show any game, rather than just cut the first few minutes.

 

[Red rose]

The collapse of Roman Abramovich’s Empire

https://apple.news/Am0Zn5u_rRUKMYxx2_3OfzQ

 

[rubans]

China blocking all premier league games this weekend.

Froggy will have to find an illegal stream.

As long as they pay the signed contract, couldn’t give a F. They signed on reduced terms IIRC.

 

[Beamrider]

What’s the difference between net profit and net proceeds even? Sounds BS? [mention]Beamrider [/mention] any ideas?

It’s not a defined accounting term. My view is that net proceeds means price paid by the buyer, less fees incurred on the sale. I suspect Abramovich’s view will be something more like profit on sale, which will be at least £1.5bn less, as I understand it.

 

[737Max]

The Premier Leagues have shot themselves in the foot. Don't announce it. Put an embargo on it to all clubs and media then right before the Kick Off give us as much Ukranian propoganda as you want. One way to piss the Russians and Chinese off but now you've let the cat out the bag

 

[Rosco]

China blocking all premier league games this weekend.

Froggy will have to find an illegal stream.

I hope he drowns in it

 

[The Nomad]

It’s not a defined accounting term. My view is that net proceeds means price paid by the buyer, less fees incurred on the sale. I suspect Abramovich’s view will be something more like profit on sale, which will be at least £1.5bn less, as I understand it.

Your net proceeds aligns with mine. Its more a cash flow term than anything else.

 

[dogboy]

I hope he drowns in it

That made me chuckle.

 

[jon545660]

Chelsea relience on income from transfers is the stand out I think

 

[Beamrider]

I think the related point is that they have had to become reliant on transfer income because they can’t compete with the other big clubs on commercial or match day (although the investment required to improve match day is prohibitive).
On the commercial aspect, there’s two things I think are relevant:
1. US buyers believe (with some justification) that they can do commercial better than the existing teams. That, in part, explains why there are reportedly many US buyers interested in the club - they believe it’s undervalued because it is underperforming commercially.
2. It also demonstrates that the Chelsea “brand” doesn’t have the same global appeals as ours / United’s. I’m disregarding City’s commercial performance because it is clearly Etihad-manufactured bollocks.
One further thing to add from the US perspective is that a UK football club is an attractive investment for a US tax payer. It will throw off large US tax losses in the early years of the investment (which will save them tax on their other income) and then the ultimate financial return will be in the form of a capital gain on sale, which is generally taxed at lower rates in the US than income. NB the US capital gains rates were supposed to be going up in 2022 but this has been shelved.

 

[Beamrider]

Abramovich has been added to the UK sanctions list. I did see someone on Twitter comment a week or so ago that this would make a Chelsea sale impossible if it happened. Things might be about to get interesting…

 

[dantes]

The government casually deciding to take someone's assets, sell them, and pocket the money for themselves. It's funny this time because it's Chelsea, just like it was funny that time when it was Alex Jones getting deplatformed. That didn't turn out well for the future. Nor will this.

 

[Athens]

 

[Athens]

Stamford bridge will still probably have more fans than the emptyhad.

 

[Richey]

Abramovich has been added to the UK sanctions list. I did see someone on Twitter comment a week or so ago that this would make a Chelsea sale impossible if it happened. Things might be about to get interesting…

I think the government can still allow a sale to happen, but no money would go to Abramovich.

What I am not sure of is where the money actually would go, and until it is sold, or if it is not, how the club still functions as a business while it is frozen. I know they have permission to keep playing matches, but any kind of commercial activity must be difficult under these circumstances.

 

[Hyena]

So basically, no change at all.

 

[dantes]

I think the government can still allow a sale to happen, but no money would go to Abramovich.

What I am not sure of is where the money actually would go, and until it is sold, or if it is not, how the club still functions as a business while it is frozen. I know they have permission to keep playing matches, but any kind of commercial activity must be difficult under these circumstances.

Rishi Sunak will know the answer to that.

 

[Hyena]

They are freezing the asset, not appropriating it.

So Chelsea will remain Chelski. Tuchel, Lukaku etc will continue to be paid. They will still play Lille and Norwich and qualify for the CL semi finals.
They're not fucked in the least bit. The only difference is that Roman may no longer feel incentivized to rig the CL draw.

 

[LeTallecWiz]

They are freezing the asset, not appropriating it.

So Chelsea will remain Chelski. Tuchel, Lukaku etc will continue to be paid. They will still play Lille and Norwich and qualify for the CL semi finals.
They're not fucked in the least bit. The only difference is that Roman may no longer feel incentivized to rig the CL draw.

- cannot sell tickets (only season tickets already sold)
- cannot sell merchandise
- cannot sign players or new contracts for players