Financial Expert Explains Why Chelsea Might Go Into Administration

One expert has suggested that Chelsea could be forced to go into administration following the sanctions replaced on Roman Abramovich on Thursday.

The Premier League was shaken by the news that Abramovich's assets, including Chelsea FC, were being frozen, in the wake of Russia's invasion of Ukraine.

It's something that MP Chris Bryant had been calling on the government to do for weeks and it came after the Blues' billionaire owner had decided to sell.

The sanctions, as well as meaning no transfers in or out of Stamford Bridge, will put a temporary halt on the Russian's plans to sell the club.

He had hoped to sell for around £4 billion, which included the £1.5 billion in debt the club owed him and, according to one expert, that owed amount could end in administration.

"The Chelsea FC Holding Co owes Abramovich c£1.5bn. That's now frozen and I don't believe he can't write it off at this time even if he wants to," Financial Fair Play and football finance expert Ed Thompson wrote on Twitter.

"So no-one will buy the club with that hanging over it. Club loss-mqking, so for what it's worth I expect club to go into Administration."

The #ChelseaFC Holding Co owes RA c£1.5bn. That's now frozen and I don't believe he can't write it off at this time even if he wants to. So no-one will buy the club with that hanging over it. Club loss-mqking, so FWIW, I expect club to go into Administration.

— Ed Thompson (@edthompsn) March 10, 2022

Worth remembering that when Saints Holding Co went onto Administration, the club had a points deduction. Barring some bizarre arrangement between Abramovich and Govt, hard to see that frozen £1.5bn debt to RA in Fordstam ltd ending well

— Ed Thompson (@edthompsn) March 10, 2022

Portsmouth are the last club to go into administration whilst being a Premier League side, when they were given a points deduction during the 2009/10 season.

Many clubs in the Football League have also been deducted points over the years for going into administration but it's not expected from the top tier sides.

Of course, Thompson's prediction is far from guaranteed, and Abramovich did say that he was going to write off the debt owed to him.

Before today's news, he was reportedly looking for around £4 billion to sell the club, which is essentially how he was going to get that money back, with one NFL team owner linked with potentially buying them.

There is still a chance that the club could be sold, despite the sanctions, although the billionaire would have to prove that he would not benefit from doing so.

Since buying the club in 2003, the 55-year-old has overseen five Premier League titles for his team, as well as two Champions League wins.