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Thursday, June 9, 2022

Chelsea set for potential FFP investigation after £100m Todd Boehly and Roman Abramovich problem

  Chelsea owner Todd Boehly had to hold off £100million in the purchase of the club over growing concerns regarding Financial Fair Play ...

 

Chelsea owner Todd Boehly had to hold off £100million in the purchase of the club over growing concerns regarding Financial Fair Play rules, according to the Telegraph . The report states that he was informed late into the deal about a number of remaining debts under previous owner Roman Abramovich.

It comes after the American finally confirmed the deal to own the club just a few weeks ago. The ownership saga lasted three months for the Blues, starting with Abramovich’s desire to sell the club in March.

The 55-year-old was then sanctioned by the UK Government shortly after Russia’s invasion of Ukraine, putting a freeze on all of his assets in the nation. While the club was one of these assets, a special sporting licence was issued that allowed them to operate under specific restrictions.

US Banking firm Raine were left in charge of overseeing the bidding process, eventually deciding that Boehly’s offer was the preferred option. The American was joined by majority stakeholder Clearlake Capital in an offer worth roughly £4.25billion.

While issues appeared to hold the deal up, it finally crossed the line and the Blues could operate closer to normal under the new regime. However, as per the Telegraph report, there are concerns surrounding a financial investigation.

That’s due to last minute announcements of liabilities owed under the previous regime, with concerns that the Premier League and UEFA could be alerted. This is due to checks into taxes owed through the funding received by Abramovich, prompting potentially huge debts that were not otherwise disclosed beforehand.

The £100million held back is a contingency, should the Premier League punish the club under their profit and sustainability rules. It remains to be seen whether this outcome will likely be the case.

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