Chelsea takeover: New owners withhold £100m from final purchase price

Chelsea’s new owners withheld £100m from the final purchase price in their recently completed takeover to protect themselves against ‘unforeseen liabilities’.

The consortium led by LA Dodgers co-owner Todd Boehly officially succeeded Roman Abramovich as Chelsea owners at the end of May in a deal worth £4.25bn - £ purchase plus £1.75bn worth of further investment into the club.

The proceeds of the sale are to benefit victims of the war in Ukraine, with Abramovich forbidden from profiting due to sanctions imposed by the UK government.

But with a degree of uncertainty over the potential for additional liabilities to materialise due to the relatively complicated nature of finances involved, £100m has been held back to cover any should they arise. If none do, that money will also be paid into the same fund as the rest.

The speed at which the takeover was completed is also a factor behind the extra layer of caution.

“It is not unusual in these types of transactions, particularly deals completed in an accelerated timeframe, to withhold an amount related to any unforeseen liabilities that may arise from transactions that occurred prior to the sale,” a spokesperson for the club said on Thursday.

The Times has also reported that ‘club insiders’ are confident there is no breach of financial fair play rules.

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Source : 90min