Funds from Roman Abramovich’s sale of Chelsea FC have made at least £175 million in interest while sitting in a UK bank account, new financial reports reveal. This has led analysts to label the firm managing the frozen funds as potentially “the most profitable football business in the world.”
Fordstam, the company that managed Abramovich’s ownership of Chelsea, has reported that the initial sale amount of £2.3 billion has now grown to nearly £2.5 billion. After being sanctioned by the UK government in 2022 due to his connections with Vladimir Putin, Abramovich expressed a commitment to donate the sale proceeds to support victims of the war in Ukraine. However, the money remains unreleased because of ongoing legal disputes with the UK government regarding its usage.
Adding to the complexity, there is a separate criminal investigation in Jersey concerning the original source of Abramovich’s wealth. Additionally, there is uncertainty about whether £1.4 billion in loans, which were part of the financial structure that helped fund Chelsea’s successes, will be deducted from the final amount available for donations.
While the funds have been accumulating interest, they made £114 million in 2024 alone, with an additional £63 million earned the year before. This interest accumulation suggests that the total available amount has grown significantly since the last financial report, which covered only up to June 2024.
Football finance expert Stefan Borson remarked that the interest earned indicates that this situation could be one of the most lucrative football-related ventures around. However, he noted that it remains unclear how progress has been made in distributing the funds to Ukraine.
As of now, the £2.5 billion from the Chelsea sale is still held in a Barclays bank account due to the legal dispute with the government. Officials have stated that they want the funds designated for humanitarian efforts in Ukraine, while reports suggest Abramovich may aim to redirect the money to a broader foundation.
A spokesperson from the government reiterated their position: “We have been clear from the start that the proceeds of the sale of Chelsea FC must be used for humanitarian causes in Ukraine. Roman Abramovich has yet to fulfill the commitment made at the time of the sale.” The government is preparing to take further legal action to ensure that the funds are used properly, emphasizing their priority to support the humanitarian needs of those suffering in Ukraine.
There is also concern about whether Abramovich’s potential demand for repayment of the £1.4 billion in loans will affect the donation amount.
Kieran Maguire, another football finance expert, noted the ambiguity regarding whether Abramovich truly intended to donate all the sale proceeds or just the profits, especially given that the sum owed to his offshore company is still recorded.
The future of the loan repayment is complicated further by Abramovich’s ongoing sanctions, which prevent any legal repayment without approval from the Office for Financial Sanctions Implementation. Additionally, the Jersey prosecutors are investigating if the proceeds from the Chelsea sale could be classified as proceeds from crime, particularly looking into the origins of Abramovich’s wealth from his earlier businesses.
The Guardian reached out to legal representatives of Abramovich for further comments.
