Chelsea sale completed after Roman Abramovich agrees to government terms

The £4.25bn takeover of Chelsea football club has been completed after Roman Abramovich agreed to the UK government’s terms for the sale, ending a tumultuous period that raised fears over the club’s existence.

Nadine Dorrie, the sports and culture minister, said the UK government issued a licence on Tuesday night that permits the sale of Chelsea.

A new era at Stamford Bridge can officially begin after a bid led by Todd Boehly, a part-owner of baseball’s LA Dodgers, was given permission to go through. The government issued a licence for the sale after it said it was “now satisfied that the full proceeds of the sale will not benefit Roman Abramovich”. He was hit with sanctions after the Russian invasion of Ukraine.

The sale will follow a two-step process under which £2.5bn will go into an escrow account until the government is satisfied the funds will go to a charity for victims of the war in Ukraine. Boehly’s group has committed to invest a further £1.75bn in the club. Crucially, Abramovich has agreed to legally binding guarantees allowing his £1.6bn loan to Chelsea to go into a frozen account under government control.

The government has sought assurances that the charity will be independent of Abramovich. Mike Penrose, a former Unicef UK executive director, has been asked to run the foundation.

“Late last night the UK government reached a position where we could issue a licence that permits the sale of Chelsea Football Club,” read a government statement. “Following the sanctioning of Roman Abramovich, the government has worked hard to ensure Chelsea Football Club has been able to continue to play football. But we have always been clear that the long-term future of the club could only be secured under a new owner.”

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