‘Seismic event’: What Roman Abramovich’s downfall means for Chelsea

Chelsea’s billionaire owner Roman Abramovich has been slapped with sanctions — and it has huge ramifications for the football giants.

The future of European champions Chelsea has been plunged into doubt after Russian owner Roman Abramovich was hit with UK government sanctions in response to the invasion of Ukraine.

Abramovich has bankrolled the most successful era in the Blues’ history since taking charge in 2003 — the club have won five Premier League titles and two Champions Leagues among 19 major trophies.

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The billionaire — described by the UK government as part of Russian President Vladimir Putin’s inner circle — had already signalled his intention to sell the club last week as pressure mounted.

UK Culture Secretary Nadine Dorries said the priority was to “hold those who have enabled the Putin regime to account”.

Foreign Secretary Liz Truss added: “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. The blood of the Ukrainian people is on their hands. They should hang their heads in shame.”

The fun times at Stamford Bridge are over. (Photo by Ben Stansall /AFP)

The British government said Abramovich “is or has been involved in destabilising Ukraine … via Evraz PLC, a steel manufacturing and mining company … over which Abramovich exercises effective control”.

The Times’ chief football writer Henry Winter called that update “incredibly damning” and “very damaging”, while others also reacted in similar fashion. Sky Sports’ Mark Austin called it “hugely damning”, while sports writer Paul Hayward called Abramovich’s sanction a “seismic event”.

Chelsea have been given a special licence to continue to operate but nevertheless face tough restrictions. They said they would seek talks with the government to amend the licence to “allow the club to operate as normal as possible”.

The club shop has been forced to close and fans are not able to buy merchandise — a wild development highlighted on Twitter by Tariq Panja of the New York Times, who posted a picture of a poster telling fans of the shop’s closure.

“This is the extraordinary situation the current European champions Chelsea finds itself in,” Panja wrote, alongside the photo.

Chelsea has been rocked. Photo: @tariqpanja/Twitter.

Thomas Tuchel remains committed to the club. (Photo by Lewis Storey/Getty Images)

Meanwhile, Chelsea coach Thomas Tuchel insisted he is not concerned by the sanctions.

“Actually, I’m not sure I am concerned but I am aware of it. It changes almost every day,” Tuchel said before Chelsea’s Premier League match at Norwich.

“It is a big change from yesterday to today. At the moment it seems on the football side it is almost protected.

“I know there is a lot of noise around. I don’t have another answer for you.”

ESPN’s Mark Ogden told BBC radio of the sanctions: “It’s multi-layered. It’s huge and it affects every little area of the club. Once we see the fine print, it’s cataclysmic for Chelsea. It’s unprecedented.”

Here’s what the sanctions mean for Chelsea.

Sale on hold

The freezing of Abramovich’s assets means any sale of the club is on hold for now.

A spokesman for Prime Minister Boris Johnson confirmed a new licence would need to be granted for the club to change hands and in a manner that would not allow the Russian to profit.

A number of interested bidders have signalled their interest in the club, although many believed Abramovich’s reported $5.3 billion asking price was unrealistic.

Season to be completed

The current licence given to the club to allow their day-to-day operations to continue is due to expire on May 31, after the end of the season.

Chelsea confirmed both their men’s and women’s teams would fulfil their fixtures on Thursday.

In a statement the Premier League said: “The league will now work with the club and the government to ensure the season will proceed as planned and in line with the government’s intention.”

Chelsea still have 12 Premier League games left to play this season, are into the FA Cup quarter-finals and hold a 2-0 first leg lead over Lille in the Champions League last 16.

Thomas Tuchel’s side sit third in the Premier League and are well on course to qualify for next season’s Champions League.

Players can be paid

Chelsea’s licence allows the club to continue paying staff and costs for the hosting of matches at Stamford Bridge.

However, travel costs for away games have been capped at $35,000 per match, which could cause issues for away matches in the Champions League, with Chelsea set to travel to French club Lille next week.

Chelsea is under scrutiny. (Photo by Justin Tallis / AFP)

No signings or new contracts

Chelsea can continue to pay money they owe for transfer agreements made prior to March 10, 2022.

However, no exception has been granted for the recruitment of new players or agreeing new contracts.

Chelsea risk losing captain Cesar Azpilicueta and key defender Antonio Rudiger, among those out of contract at the end of the season, on free transfers.

No new tickets or merchandise sales

Season ticket holders at Stamford Bridge will be allowed to attend matches, but no ticket or merchandise sales are permitted.

That could mean away fans are shut out of Stamford Bridge and Chelsea supporters are blocked from travelling to away games.

The club shop at Stamford Bridge has been shut down.

TV/prize money frozen

The money due to the club from highly lucrative television contracts for the Premier League and Champions League can be paid to Chelsea.

However, that cash is to be frozen, raising the question of how the club will continue to meet its payroll demands in the coming months.

Despite winning the Champions League last season, Chelsea made a $272 million loss in the year to June 30, 2021.

That was due to a $550 million wage bill even before the club-record signing of Romelu Lukaku for $170 million in August.

Chelsea’s shirt sponsor, telecommunications company Three, has suspended its $71 million-a-season deal with the club.

A spokesman for the mobile network provider said it felt the temporary suspension was “the right thing to do” in light of the asset freeze and travel ban on the billionaire.

“The concern might be what happens if Chelsea’s cash reserves are insufficient to pay their wage bill,” football finance expert Kieran Maguire told the BBC.