Chelsea Owners Get £150m Lifeline in Case of FA Fines, Say Experts
A £150m buffer against fines from the Football Association (FA) for alleged breaches during the Roman Abramovich era would leave Chelsea FC unaffected, according to football finance experts. This comes after corporate filings revealed that Clearlake, the consortium led by US investor Todd Boehly, had set aside a significant amount of money in case of any penalties.
A clause inserted into the takeover deal by BlueCo 22, the subsidiary through which Clearlake bought the club, has meant that £150m of the proceeds will be withheld for five years. This figure is higher than previously reported and would cover potential costs associated with "any proceeding in relation to events which took place before the acquisition date".
While a sporting sanction on Chelsea, such as a points deduction or suspension from competition, may still be possible, experts say that the size of this provision suggests that financial penalties are more likely. The clause could also cover claims for consequential losses from any sanctions.
"This has effectively been taken into consideration in the offer price for the club," said Kieran Maguire, an associate professor in football finance at the University of Liverpool. "The owners can theoretically put an extra £150m into the club and be no worse off than if they'd paid the full agreed sum."
Chelsea FC has previously indicated that it expects to receive a financial penalty from the FA, highlighting its self-reporting of certain transactions. The club's women's team was sold to BlueCo 22 as part of the deal.
Fordstam Limited, the corporate vehicle used by Chelsea during Abramovich's tenure, revealed that it does not expect to receive £150m of the proceeds. This is due to a "holdback amount" clause inserted into the takeover deal.
The accounts also reveal significant fees paid to executives and lawyers involved in the sale, including a £4.8m bonus for Eugene Tenenbaum, an associate of Abramovich.
Experts say that discussions with the Treasury regarding the release of funds pledged by Abramovich continue. However, repayment of an interest-free loan owed to Camberley International Investments could only be approved by the Office of Financial Sanctions Implementation and would not affect Chelsea's financial position significantly.
A £150m buffer against fines from the Football Association (FA) for alleged breaches during the Roman Abramovich era would leave Chelsea FC unaffected, according to football finance experts. This comes after corporate filings revealed that Clearlake, the consortium led by US investor Todd Boehly, had set aside a significant amount of money in case of any penalties.
A clause inserted into the takeover deal by BlueCo 22, the subsidiary through which Clearlake bought the club, has meant that £150m of the proceeds will be withheld for five years. This figure is higher than previously reported and would cover potential costs associated with "any proceeding in relation to events which took place before the acquisition date".
While a sporting sanction on Chelsea, such as a points deduction or suspension from competition, may still be possible, experts say that the size of this provision suggests that financial penalties are more likely. The clause could also cover claims for consequential losses from any sanctions.
"This has effectively been taken into consideration in the offer price for the club," said Kieran Maguire, an associate professor in football finance at the University of Liverpool. "The owners can theoretically put an extra £150m into the club and be no worse off than if they'd paid the full agreed sum."
Chelsea FC has previously indicated that it expects to receive a financial penalty from the FA, highlighting its self-reporting of certain transactions. The club's women's team was sold to BlueCo 22 as part of the deal.
Fordstam Limited, the corporate vehicle used by Chelsea during Abramovich's tenure, revealed that it does not expect to receive £150m of the proceeds. This is due to a "holdback amount" clause inserted into the takeover deal.
The accounts also reveal significant fees paid to executives and lawyers involved in the sale, including a £4.8m bonus for Eugene Tenenbaum, an associate of Abramovich.
Experts say that discussions with the Treasury regarding the release of funds pledged by Abramovich continue. However, repayment of an interest-free loan owed to Camberley International Investments could only be approved by the Office of Financial Sanctions Implementation and would not affect Chelsea's financial position significantly.
. Like, what if the FA doesn't just slap a fine on Chelsea but actually takes away some points or suspends them from competitions? That could be a huge blow to the team's reputation and their ability to compete in Europe. And with that £150m set aside, it feels like they're basically saying "we've got this covered" 
. Don't get me wrong, I'm all for Chelsea doing well, but it's just another example of how complicated and messy football finances can be 
. And what about the fact that Abramovich has a history of controversy with the FA? 
. I mean, whoever thought that was a good idea? It's like Clearlake is trying to prepare for the worst-case scenario... and honestly, it might just work out in their favor 
. But seriously, this clause could save Chelsea from financial penalties, which would be huge 
. The fact that experts say it's been taken into consideration when calculating the offer price makes sense too 
. It's like Clearlake is buying a club with a built-in insurance policy 
!
supposedly it'll cover all the costs if dey get sanctioned financially tho experts say dey're more likely 2 get hit w/ fines 
. It's just smart business, right? They're basically saying, "Hey, we know the FA might try to hit us with some penalties, but we've got this." And honestly, I think it's a good sign that they're being so proactive about their finances – it shows they're thinking ahead and trying to avoid any potential headaches 
I think this £150m lifeline is pretty reassuring for the new owners of Chelsea FC 
. It seems like they've got a solid plan in place to cover any potential fines or penalties 
️. The fact that it's included in the takeover deal and can be used to boost the club's finances makes sense. However, I'm still curious about what led to this clause being added in the first place 
i think this is so crazy! £150m lifeline in case of fa fines? that's like, a huge amount of money! 
but seriously though, what's the point of having a clause that big? shouldn't they just be honest about their past and deal with whatever fines come their way? 
... but still, it's good that Clearlake is being responsible and setting aside that money... maybe it'll even help them invest in their team more 
... poor Abramovich though, he's got a lot of IOUs to pay off 
. if they do get fined, can't they just pay it off themselves? 
it's just football, right? 
seems like there's still some loose ends to tie up before Clearlake can breathe a sigh of relief 
the fact that chelsea owners got a £150m lifeline in case of fa fines is literally mind blown 
.