What do Abramovich sanctions mean for Chelsea financially?
When the UK announced sanctions for Chelsea owner Roman Abramovich, the stoppage of ticket and merchandise sales came too. How will this affect the club?
When the UK issued sanctions against Chelsea owner Roman Abramovich, with them came some restrictions.
What can and can't Chelsea do?
The club can still play their home and away games and pay the players and staffs their full salary. They cannot, however, sell tickets to home or away fans. Only season ticket holders will be permitted to attend games. The club will not be able to make any new transfers or sign any contracts, sell merchandise either at the stadium or online, and are prohibited from spending over 20,000 pounds on away travel. It is possible that the sale of the franchise could still go through, only if Abramovich does not receive any financial gain from it.
“Chelsea has lost more money than any other club in the history of the Premier League,” said soccer finance expert Kieran Maguire. “And those losses historically have been underwritten by Roman Abramovich himself, and he’s not in a position now to do so going forwards.”
Former Blues player Pat Nevin revealed that some staff members have already been partially laid off and that the future of the franchise is in danger.
The UK's decision to suspend its sponsorship could lead to potential boycotts from corporations. The cell phone company Three has suspended its 40 million pound shirt sponsorship deal already. Some corporate sponsors have said they are assessing the contracts with Chelsea and reviewing their partnerships. It’s likely other sponsors will follow suit.
The Chelsea franchise is Abramovich’s most valuable UK asset. Foreign Secretary Lis Truss said, “Today’s sanctions show once again that oligarchs and kleptocrats have no place in our economy or society. With their close links to Putin, they are complicit in his aggression.”