Roman Abramovich in legal battle with UK Government over £2.5b Chelsea sale

Former Chelsea owner Roman Abramovich is strangely bracing himself for a legal war with the UK Government over the distribution of the £2.35 billion from the sale of Chelsea without his full blessing.

Abramovich’s hands were forced to release his West London club to its new American owners through a consortium that facilitated the sale in May 2022.

The consortium, led by Todd Boehly and Clearlake Capital – a sale worth £4.25 billion- ended his 19-year ownership of the Premier League club after the UK government sanctioned him following Russia’s invasion of Ukraine.

The sanction came as a result of an alleged business affiliation with the Russian president, Vladimir Putin. Since then, the money has been frozen in an account held in a UK bank, while the two factions argue over the precise way it should be used.

Based on the reported agreement between the Russian billionaire and the UK government, Abramovich’s initial commitment was to give the sale amout to charitable causes.

However, sources close to the former Chelsea owner indicate that he intends for the funds to support all victims of the war in Ukraine, though no clear definition has been provided as to what this entails or whether it will include Russians affected by the conflict.

Abramovich sold Chelsea in 2022, 19 years after buying the west London giants. Credit: Getty

On the flip side of this legal tussle, the UK government maintains that the money must be used for Ukrainian victims or causes only and is prepared to take legal action to take over the funds and resolve a four-year resolution.

UK Prime Minister Keir Starmer has imposed a March 17 deadline for releasing the funds to a dedicated foundation, though sources view clarity by that date as unlikely.

Abramovich’s legal team argue the money still belongs to the Russian billionaire, and they will go a long way to block any attempt to release the funds against his wishes.

“Strangely, the UK government appears to be treating this proposed donation as a form of punitive measure against Mr Abramovich,” the letter reads.

“This is fundamentally incorrect. It is important to emphasise that the funds — although currently frozen — remain the property of Fordstam Limited, which is wholly owned by Mr Abramovich.

“Should the UK government believe it has the legal basis to confiscate these funds instead, it is of course open to initiate formal confiscation proceedings, which will be contested in court.”

In response to Abramovich’s position, Foreign Secretary Yvette Cooper released the following statement via talkSPORT: “This money was promised to Ukraine over three years ago.

“It is time Roman Abramovich does the right thing, but if he won’t we will act. That’s why the licence has been issued.

“It is time this money was used to rebuild the lives of people who’ve seen devastation as a result of Putin’s illegal war.”

The initial £2.35 billion from Clearlake-Boehly’s Chelsea purchase was originally £2.5 billion, with £150m set aside to cater for potential issues arising from due diligence, including ongoing FA charges for alleged financial rule breaches during Abramovich’s tenure.

Deeper issues surrounding the sale of Chelsea have culminated in much deeper cracks in the distribution of the funds, as earlier allegedly agreed by both parties.

This makes it more unlikely for the UK government to be able to confiscate or release the funds this month, as envisaged, with Abramovich adamant that the money still belongs to him and will only be distributed on his terms.