Concern mounting among Chelsea players as implications of sanctions sink in

Club unable to sign players or renew existing contracts as a result of British government’s decision

Chelsea’s Russian owner Roman Abramovich has been hit with an assets freeze and a travel ban as part of new UK government sanctions targeting seven Russian oligarchs. Photograph: Getty Images

Chelsea and their players have been plunged into a state of limbo after the UK government imposed sanctions on Roman Abramovich, putting the sale of the club on hold and leaving the European champions at risk of falling into financial difficulties.

The Guardian understands that some of the players are concerned about the direction of the club and, by extension, their own futures, and are desperate for clarity.

They are alarmed because one of the stipulations that have arisen from the sanctions is that Chelsea are unable to sign players or renew existing contracts. One dressing-room source said it was “chaos”, with people fearing that the club could go into administration.

The men’s team have three important first-team players whose deals are set to end in the summer – César Azpilicueta, Antonio Rüdiger and Andreas Christensen. The women’s team have five squad members whose contracts expire at the end of the season: Ann-Katrin Berger, Maren Mjelde, Jonna Andersson, Ji So-yun and Drew Spence.

READ MORE

Christensen is believed to have an agreement in principle to join Barcelona as a free agent. But other members of the squads – the men’s and the women’s team, including some who are out on loan – are worried about how the restrictions will affect the next phases of their careers. Neither the men’s manager, Thomas Tuchel, nor the women’s, Emma Hayes, is understood to be considering their futures at the club at the moment.

In a brief statement the club said it will ask the government to alter the terms of the licence.

It read: “We will fulfil our men’s and women’s team fixtures today [Thursday] against Norwich and West Ham and intend to engage in discussions with the UK government regarding the scope of the licence. This will include seeking permission for the licence to be amended in order to allow the club to operate as normal as possible.”

The club have been granted a special licence that will allow them to fulfil their fixtures, but face an uncertain future after Abramovich's assets were frozen because of the oligarch's alleged ties with Vladimir Putin and the Russian government.

Broadcast and prize money will be frozen and the licence is limited to “football-related activity”, leading to the ban on signing players and new contracts – and other commercial restrictions. It means Abramovich will need approval from the UK government before selling the Stamford Bridge club.

Abramovich, who has come under intense scrutiny after Russia’s invasion of Ukraine, will not be permitted to profit from the sale of Chelsea. Government sources said they are open to considering an application for a new licence that would permit a new owner at Stamford Bridge if a suitable bid emerges, although there is no clarity over where the money from any sale would go at the moment.

Potential sale

The culture secretary, Nadine Dorries, said: “The important measures announced will clearly have a direct impact on Chelsea FC and its fans but we are working hard to make sure the club and the national game are not unnecessarily harmed. We have granted the club a licence so it can fulfil its fixtures, pay its staff and existing ticket holders can attend matches. We know football clubs are cultural assets and we are committed to protecting them.”

Discussions are continuing between the treasury, the Premier League and the department for digital, culture, media and sport. One source said: “The primary thing today is about taking action on oligarchs with close ties to the Kremlin. We’re working through some of those wider implications, including around a potential sale at the moment.”

It is understood the decision to sanction Abramovich, which was announced on Thursday morning, has not deterred potential bidders.

Sources said a consortium led by Todd Boehly and Hansjörg Wyss has not ended its interest in buying Chelsea. The British property tycoon Nick Candy has also been working on putting a bid together and representatives for Muhsin Bayrak have said the Turkish businessman remains determined to buy the club.

For the time being, though, Chelsea are in turmoil. Abramovich cannot put any money into the club or take any out of it. The 55-year-old has given Chelsea £1.5bn worth of loans since buying them in 2003.

The club’s latest accounts revealed a loss of £145.6m in the last financial year, although that was put down to the impact of the pandemic. Funding is provided by Fordstam Limited, a company owned by Abramovich.

As one source said: “Who would buy a club with a £1.5bn loan hanging over it?”

There is an acknowledgement that the licence could be reviewed and that changes could be made once Chelsea have had time to explain their costs to the authorities.

But in its current format the licence will force Chelsea to operate under heavy restrictions. They cannot sell match tickets and merchandise sales have been banned, with the club shop closed. Only season-ticket holders and those who have already purchased their tickets will be allowed to attend matches, but catering facilities at Stamford Bridge will remain open.

The licence states: “Remuneration, allowances and pensions of all employees of the club, including the wages of players and coaching staff . . . are payable under obligations which pre-date the date of this licence and are due in the period of this licence.”

The licence also permits “reasonable travel costs” to and from fixtures up to a maximum of £20,000, raising questions over how Chelsea will travel to France for the second leg of their last-16 Champions League tie against Lille next Wednesday.

Shirt sponsor

Chelsea can also spend on “reasonable costs” such as security, stewarding and catering up to £500,000 per match. They can continue payments to and from other clubs for existing transfers and loan deals, broadcasters can show their games and third parties who already have club merchandise in stock can sell it “on the condition that no funds or other financial benefits are made available to the club” or Abramovich.

Chelsea’s principal shirt sponsor, the mobile phone network Three, said on Thursday afternoon that it has asked the club to suspend the deal and remove their logo from the shirts. The deal is believed to be worth £40m a year.

It said: “In light of the government’s recently announced sanctions, we have requested Chelsea Football Club temporarily suspend our sponsorship of the club, including the removal of our brand from shirts and around the stadium until further notice.”

The shirt sleeve sponsor, Hyundai, said they were reviewing their deal with Chelsea while the kit manufacturer Nike declined to comment.

The UK has targeted Abramovich as part of its response to Russia’s actions in Ukraine.

In a document published by the government, Chelsea’s owner was identified as “a pro-Kremlin oligarch” and was said to be “associated with a person who is or has been involved in destabilising Ukraine and and undermining and threatening the territorial integrity, sovereignty and independence of Ukraine, namely Vladimir Putin, with whom Abramovich has had a close relationship for decades”.

The document stated that Abramovich has had a close relationship with Russia’s president “for decades” and that the association has led to him benefiting financially. Abramovich has repeatedly and vehemently denied that he is linked to Putin or the Russian state, or that he has done anything to merit being sanctioned.

The government said: “This association has included obtaining a financial benefit or other material benefit from Putin and the government of Russia. This includes tax breaks received by companies linked to Abramovich, buying and selling shares from and to the state at favourable rates and the contracts received in the run-up to the 2018 World Cup. Therefore, Abramovich has received preferential treatment and concessions from Putin and the Government of Russia.”

It was also claimed that Abramovich “has been involved in destabilising Ukraine via Evraz PLC, a steel manufacturing and mining company in which Abramovich has a significant shareholding and over which [he] exercises effective control . . . … [this ] includes potentially supplying steel to the Russian military which may have been used in the production of tanks.”

Swift process

Abramovich, under whose ownership Chelsea have won 21 trophies, put the club up for sale last week. He appointed the New York-based bank the Raine Group to oversee the process.

There has been speculation that Chelsea’s next owners will come from America. Woody Johnson, the owner of the NFL’s New York Jets, is reportedly readying a bid. Thomas Ricketts, chair of MLB’s Chicago Cubs, has been mentioned and there is reported interest from Josh Harris, whose companies own the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, although his stake in Crystal Palace could be a complicating factor.

A spokesperson for the Chelsea Supporters’ Trust said: “The CST notes with concern the government’s statement regarding the owner. Supporters must be involved in any conversation regarding ongoing impacts on the club and its global fan base. The CST implores the government to conduct a swift process to minimise the uncertainty over Chelsea’s future, for supporters and for supporters to be given a golden share as part of a sale of the club.”

When Abramovich put the club up for sale he said he would not call in his loans and announced plans to use the sale of Chelsea to donate funds to the victims of the war in Ukraine. However that fund was not intended solely for Ukrainians, raising the prospect of money going to Russian soldiers or their families.

Abramovich’s spokesperson has been approached for comment.

– Guardian