http://i.dailymail.co.uk/i/pix/2015/03/29/00/2714DD0400000578-0-image-a-24_1427588810873.jpg

 

Is this a worry?

Edited March 30, 201511 yr by skippy

No, it's owned by Abramovich.

Check Jake Cohen's explanation of it on Twitter.

Can you post a link please mate?

Can you post a link please mate?

 

Cohen argues that the club is basically debt-free, but the parent corporation (Fordstam) has been loaned £958m interest-free by Abramovich. However, the parent company is owned by Abramovich, so he basically owes £958m to himself.

All Chelsea's debt was converted to equity by Abramovich a few years ago. But the Daily Mail aren't much interested in technicalities, much easier just to print 'Chelsea - £958m in debt'.

"Debt"

I saw Cohens explanation which, as already summarised, basically said that if Abramovich ever wanted to recoup the money he would effectively be taking money out of one of his pockets just to put it in the other.

 

 All sounds sweet but I remain slightly sceptical, probably just as I don't know enough about the situation as a whole.

 

What would happen if, for example,  Abramovich wished to sell up. Would that mean any buyer would have to take on the debt when buying the club? Or does it mean that Abramovich would sell the clubs assets until the debt was recovered and then sell what is left of the club after that.

Edited March 30, 201511 yr by mclovin83

The latter doesnt bear thinking about!

I always thought when Roman does move on for whatever reason then the club would go to his son.

His son taking over is certainly not inconceivable however as far as I am aware it is just speculation based on assumptions.

His son taking over is certainly not inconceivable however as far as I am aware it is just speculation based on assumptions.

That's true, I've not much to base it on other than he seems to be just as much as a supporter as his dad is.

I suppose it is something that Roman will decide, I doubt he'd leave us in any sort of trouble though...He knows this club is his legacy and we are now one of the top teams in the wrold.

Let's try not to worry though.

http://www.theguardian.com/football/2010/may/19/roman-abramovich-chelsea-loan-debt

That's from 2010 and confirms the club is debt-free but that RA owes himself a lot of money.

As long as their is a clear and distinct separation between Chelsea Fc and Fordstam the their could be no debt on the club. Say Roman decides to pull out, but doesn't want to leave us with debt, surely he can just dissolve Fordstam as a company leaving the debt to him unpaid and the club clear. I`m pretty sure there will be many other ways o do it though in the mucky world of finance.

it's 'soft debt'

 

not really debt at all, just money loaned bu himself to the club through an investment company(middle man)

 

as already mentioned, he's not leaving ever, but when the time comes his son will take the reigns who is just as passionate about the club as he is

News Report Regarding Chelsea

Source : Daily Mail

Outcome : Factually incorrect , scare mongering , will be found to be complete and utter bollocks based on non existent references

Resolution : Delete and ignore

Follow the above and your life will be much happier .............

It's a long term investment beyond his lifetime, why do you think all these billionaires want a part of the EPL cake.

 

And he was right to do so, look at the increase in TV money in the latest deal, and you can see why these billionaires are interested in ploughing billions into our league, because of us sky subscribers, because of us.

As far as roman is concerned, me thinks it was a price worth paying, and a cheap one at that, to get most his money and himself out of Russia

I don't think there is any cause for concern for I am also of the belief that Roman has no desire to leave and should he wish to I don't think he would see the club destroyed in order to recover the debt.

 

However, If we are talking hypothetical scenario's then I still don't see why as the Parent Compnay Fordstam couldn't sell the assets of one of it's companies (Chelsea FC PLC) in order to pay back the debt should Roman call it in.

 

On that basis I don't go along with the suggestion that the club is 'debt free'. We are only debt free as long as Roman is happy not to call the debt in as far as I can understand the situation. That is very different from being debt free.

I don't think there is any cause for concern for I am also of the belief that Roman has no desire to leave and should he wish to I don't think he would see the club destroyed in order to recover the debt.

However, If we are talking hypothetical scenario's then I still don't see why as the Parent Compnay Fordstam couldn't sell the assets of one of it's companies (Chelsea FC PLC) in order to pay back the debt should Roman call it in.

On that basis I don't go along with the suggestion that the club is 'debt free'. We are only debt free as long as Roman is happy not to call the debt in as far as I can understand the situation. That is very different from being debt free.

That's how I see it as well.

But that's the same as being debt free..
If the holding company sold Chelsea the new owners would have cleared the debt to Roman, so we would be.... debt free ??
Obviously what the new owner decided to do would be another thing altogether !! And that doesn't bear thinking about :(

Don't really follow that Chelseablueboy.

 

If Roman wished to sell the club then he could do so and maintain the debt within the parent company thus making it a viable purchase for a potential buyer. This would mean Chelsea FC PC changed ownership but the debt would remain with Fordstam, I.e Amramovich. This would still mean Abramovich effectively writing off the debt.

 

Should he wish to actually get the money back, then we are back to the scenario where he sells the assets of Chelsea FC PLC in order to Fordstam to pay him before he then sells Chelsea FC PLC on with no debt top the new buyer.

 

Sorry if I have missed your point which I may well have done.

I think it is a mute point...

 

His Children are left the club in trust I understood.. so he is not planning to sell at any point that would suggest. I would say this is one of his most treasured legacy's not his yachts !  

 

Even if he did want to sell for whatever reason, then the global brand and TV money have rocketed in recent years I would expect that Chelsea would be bought. Looking at this a few years back, Glazier effectively bought Man Utd $700m, the Emirates cost about $700m, with the inflation in the game I would expect those figures to be now $900m... so that is the price of a top Premier League club I would suggest.

 

Shall we all look down the back of our sofa's and see if we can drum up enough ?

I think i get where your coming from, but the bottom line even with all the financial skulduggery that would inevitably go on, the club won't owe a penny.
And, either Roman or the new owners would be starting from scratch ?

 

There's also the bankrupting of one of the companies along the chain to consider too, it's not as if that's never been done before!!

 

I do though think that Roman has no intention of leaving Chelsea in any kind of trouble at all, i know we'll never know for sure but he has done everything right so far, and his boy is definately Chelsea through and through (you only have to look at that pic from Munich of him crying to know that) so i'm personally not worried, i think we are as secure as any other club, and much more than most.
 

If he decided to sell, and call in the debt, that would devalue the club and affect the selling price drastically. Either way you look at it, Roman has lost that money.

I saw Cohens explanation which, as already summarised, basically said that if Abramovich ever wanted to recoup the money he would effectively be taking money out of one of his pockets just to put it in the other.

 

 All sounds sweet but I remain slightly sceptical, probably just as I don't know enough about the situation as a whole.

 

What would happen if, for example,  Abramovich wished to sell up. Would that mean any buyer would have to take on the debt when buying the club? Or does it mean that Abramovich would sell the clubs assets until the debt was recovered and then sell what is left of the club after that.

He said that he will sell the club to me for a pound......what a nice guy