Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

Levy
FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Chelsea FC Owe Abramovich 700 Million

Thu 20th May 2010 | Money & Finance

Previous reports that Chelsea Football Club owner Roman Abramovich has written off his £726 million loan to the club by converting it into shares, does not paint a fully accurate picture, reports the Guardian.

Abramovich has channeled his loans to the club through a holding company, Chelsea Limited, since his buying into the club in 2003. While the loans from this holding company to Chelsea FC were converted to shares last year, Abramovich's loan to Chelsea Limited were not converted. So, technically that loan still stands and has grown because of the additional £25 million that Abramovich lent this year following Chelsea's expensive dismissal of Luiz Felipe Scolari and his coaching staff.

Chelsea Limited is now called Fordstam Limited, following an official name change, and its accounts show an £726 million debt owed to Abramovich. A Chelsea spokesperson said: "Recapitalisation of loans happened at the level of Chelsea FC plc, not the holding company (Fordstam), therefore making the football club debt free." 

The club is debt free but the parent company is not. While the loan is interest free, it is repayable should Abramovich choose to give an 18 months' notice. The Russian billionaire can still opt to get his money back if he decides to sell his shares or when the club is proving profitable.

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...