Reports reveal that Chelsea hold a £150 million money buffer to cover possible fines from the Football Association (FA) for penalties arising from rule breaches during the Roman Abramovich era. Experts in finance reckon that this reserve is likely to render any kind of sanctions without money, e.g. points deductions or not competing in a certain competition, as the most probable consequences.
Financial Safeguard and Abramovich-Era Deals
Corporate filings show that Chelsea’s former holding company, Fordstam Limited, does not expect to receive £150 million from the 2022 sale proceeds to Todd Boehly’s consortium. The club set aside the withheld amount, part of the original takeover agreement, for any legal or financial fallout from pre-acquisition activities. It covers potential fines and related claims up to that value.
Fordstam’s accounts indicate the company wrote off the figure due to uncertainty over recovery. Football finance experts Stefan Borson and Kieran Maguire stated that this provision effectively shields the club from financial loss, as the original sale price already factored in the potential fine.
Potential Sporting Consequences
Such a situation would be financially punishing to a very limited extent, but experts have raised the possibility of such a power still being there, that Chelsea could face sporting sanctions like points deductions or tournament bans.
The Blues expect a fine but have shown willingness to work with the authorities, stating that they were the ones who self-reported several transactions from the Abramovich era.
Author’s View
One hundred and fifty million pounds as a safety net puts the club’s financial planning very clearly, but it also makes one wonder how much accountability there is for the management that was wildly off track in the past. Even if the fine were to be paid off, Chelsea’s reputation and on-field future might be tested more severely than any monetary penalty could.
