Roman Abramovich Has Sanction Insurance: A $2 Billion Loan To Chelsea FC

Roman Abramovich has a multimillion dollar insurance policy in case the U.K. comes after his assets.

Forbes valued the club at $3.2 billion last year, after it was bought for around $190 million in 2003 by Roman Abramovich. It owes the Russian billionaire $2 billion.

According to a soccer-finance lecturer at the University ofLiverpool, it gives Abramovich no shortage of leverage in the U.K., depending on how deep the sanctions are. If he wants to get his own back, he could call in a loan from the club.

As many teams scramble to cut ties with Russia, the situation underscores how the crisis could impact the sports world. The logo of Russian energy giant Gazprom was removed from the jerseys of the German soccer team. Manchester United has yet to comment on its sponsorship with Russia's biggest airline, Aeroflot, after sanctions prevented the company from operating in the U.K. There will be more big-draw events to flee Russia.

Forbes says that Abramovich has a fortune of $13.3 billion, mostly from steelmaking and metals. His name has been top of the list of most likely to face U.K. sanctions on assets and business interests. Over the last week, Parliament has been forced to address the flow of Russian money into London as U.K. and European Union politicians say they fear loopholes in U.K. rules could derail their punitive measures against Russian aggression.

Chris Bryant told the house that he should no longer be able to own a soccer club because he was protected from defamation lawsuits.

The accounts for the past year show a $2 billion loan from the ultimate controlling party, Mr. R Abramovich.

The loans are leverage against any attack on his assets. It's irrelevant if this money goes in the form of equity or debt. The club could be on the hook because he could argue that his assets are frozen and demand the money back.

A potential buyer would need a lot of money. There may be better value in smaller clubs that buyers can grow and shape themselves, as shown by the price paid for Newcastle United by a consortium led by Saudi Arabia.

The question of who should be allowed into the ownership ranks of top-tier European soccer organizations has been raised by the situation with Roman Abramovich.

A number of factors, including a lack of criminal convictions, violations against a governing sports body, and financial viability, are screened by the owners and directors of the premier league. Abramovich passes on them. Soccer has become more vulnerable to questionable ownership due to the monetary strains that have made it more difficult to compete at the highest level. The circumstances behind the sale of the club have prompted a review from the league. The war in Ukraine has complicated matters. The league didn't comment.

Russia has not been a good association for international sports in recent years, with scandals such as sports washing and the use of performance enhancing drugs.

Just because he could doesn't mean that he would cause the financial collapse of one of the most famous clubs in Europe, just to spite the U.K. government. He helped in the formation of the Super League before leading the exodus against it. The option to wreck his prized trophy is still on the table.

People have talked about solidarity and protecting the European soccer pyramid.