Chelsea Football Club sale set for approval after Abramovich meets ‘red lines’

The sale of £ 4.25 billion by Roman Abramovich of the Chelsea Football Club to a consortium led by American financier Todd Bohlie is expected to be signed by British ministers on Monday night after weeks of tense negotiations to ensure the oligarch does not benefit from the sale.

But British sources said the deal had not yet been given the green light by the European Commission or by the Portuguese government: Abramovich is a citizen of the European Union Through his Portuguese passport.

Sources close to the talks in the UK said the deal still had “major hurdles to overcome”, but Abramovich met with ministers’ “red lines” regarding the sale and that they expected it to be approved in London overnight.

The main issue was the insistence of Britain not Abramovich, a Russian oligarch whose sanctions, and people related to him would not benefit from the proceeds of the sale.

Abramovich’s advisers and the government have been in talks for weeks on how to deal with the £ 1.5bn consideration and debt that Chelsea owed to a beach car attached to the oligarch.

The deal, if finally approved, would mark the end of Abramovich’s two-decade tenure at the acquisition of a club he had become world winners. During his tenure, the club in West London won five Premier League titles and two UEFA Champions League trophies.

A British source close to the process said the talks were now “crazy” between Chelsea, Abramovich, the European Commission and Portugal to push the agreement across the line.

Uninterrupted work was done last weekend, but one clerk who worked on the deal said it was like a “mole,” with new problems popping up just as old ones were being solved.

One Whitehall source said: “Everyone wants to make the deal, but with the complicated nature of Chelsea’s ownership structures, nothing is simple. We work hard to assure our international partners, who rightly want their own promises about this deal, and of course – how the revenue Will be transferred in the end. “

British sources claim that the timing is tight and that Chelsea’s future will be at risk if they do not meet administrative schedules for the club that will participate in the Premier League and the Champions League next season.

Bohali, who owns shares in the Los Angeles Lakers basketball team and the Los Angeles Dodgers baseball side, is leading a takeover with the support of investment firm Clearlake Capital of California, Swiss billionaire Nissior Weiss and Guggenheim Partners CEO Mark Walter Sropy. From the Premier League.

Upon completion, American investors will dominate four of the so-called top six clubs in the league, the richest local competition in Europe. Arsenal are owned by Stan Kronki, the Glazer family controls Manchester United, and John Henry’s Fenway Sports team owns Liverpool.

Abramovich put Chelsea up for sale just days after Russia’s invasion of Ukraine on February 24. He was subsequently involved in failed peace talks between the two sides.

The British government approved the oligarch on March 10.

While technically subject to a moratorium on assets as a result of the sanctions, Chelsea have been able to meet their commitments and continue to operate thanks to a special UK government license expiring on 31 May.

The club’s auction drew interest from billionaires, institutional investors and star athletes, including racing driver Lewis Hamilton and tennis champions Serena Williams, who supported the group led by private investment tycoons Josh Harris and David Blitzer, shareholders in the Premier League rival group.

Bohali won a bid to acquire Chelsea for £ 2.5 billion. He also pledged to invest an additional £ 1.75 billion in the club’s stadium, facilities and playing group in the coming years. His team agreed to severe restrictions on dividends, management fees and debts, agreements designed to preserve the club’s future.

This was the second time that Bohli, the former president of investment manager Guggenheim Partners, had fallen in love with the asking price of Abramovich at £ 3bn in 2019.

The American Merchant Bank Rain Group managed the tender on behalf of Abramovich. American investment bank Goldman Sachs and boutique advisor Ruby Warsaw advised Boehly.

Chelsea Football Club sale set for approval after Abramovich meets ‘red lines’ Source link Chelsea Football Club sale set for approval after Abramovich meets ‘red lines’

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