Chelsea’s bank account with Barclays has reportedly been suspended after owner Roman Abramovich was sanctioned.
Sky Sports claim the bank has taken the action because it needs time to evaluate the licence handed to the club by the UK government to continue football-related activities in the wake of the Russian billionaire being sanctioned.
The report claims the Blues remain hopeful Barclays will soon lift their suspension of their account.
The west London club are currently operating under a government-approved special licence.
It came after Abramovich had his assets frozen, as well as seeing ‘a prohibition on transactions with UK individuals and businesses, a travel ban and transport sanctions’ imposed on him due to his perceived links to Vladimir Putin.
The licence also currently prohibits Chelsea from seeking a sale of their club, but the government have indicated they would be prepared to alter the terms to permit a sale if they receive an application from the club.
Chelsea are continuing to negotiate with the government over securing exemptions from a number of the restrictions place on them on Thursday, particularly with regard to ticket sales and match-day operations and travel costs, but have yet to achieve significant breakthroughs.
Chelsea ‘s bank account with Barclays has reportedly been suspended after owner Roman Abramovich was sanctioned
Barclays reportedly need time to evaluate the licence handed to the club by the UK government to continue football-related activities
The west London club are currently operating under a government-approved special licence
Under a wide-ranging raft of restrictions, Chelsea were left unable to sell match tickets, forced to close the club shop and blocked from taking bookings for the Stamford Bridge hotel.
They were told they can no longer buy or sell players, or offer new contracts, and were restricted to a maximum spend of £20,000 on travel to away matches.
They were informed that they can only pay ‘reasonable costs’ towards hosting home fixtures, ‘not exceeding £500,000 per fixture, per team’.
But there is a view the limits on transport and hosting matches will need to be raised to stop the club losing money.
Under a wide-ranging raft of restrictions, Chelsea were left unable to sell match tickets and forced to close the club shop
Chelsea will continue to receive TV broadcast payments and prize money, but this will be frozen. Existing staff and players will continue to be paid.
The club will also ask for clarity over contracts, with a number of star players’ deals due to expire at the end of the season.
As it stands, Chelsea cannot renew any contracts – meaning defenders Antonio Rudiger, Andreas Christensen and Cesar Azpilicueta will leave in the summer.
Whilst Chelsea were not placed in administration after Abramovich’s assets were frozen on Thursday the sales process is likely to resemble that carried out by clubs who have been.
Job losses are regarded as inevitable, not least as many Chelsea staff are no longer permitted to carry out their roles, with the club’s merchandising and ticket operations shut down.
The most pressing short-term issue for Chelsea is persuading the government to raise the £500,000 cap on match-day operating costs.
In ordinary circumstances a match-day at Stamford Bridge costs closer to £1m, and without a change to the cap Chelsea may have to close some areas of the ground as they will be unable to pay all the stewards and security staff required to operate safely.
The government have indicated a willingness to be flexible, particularly over issues involving the fans, and are looking into various solutions to the ticketing problem, such as giving them away or ensuring that all proceeds from future sales go to charity.
The news comes after the government opened negotiations with Abramovich’s advisers over the terms of the sale of Chelsea, which Downing Street is eager to push through as quickly as possible.
American bank The Raine Group paused the sale after Abramovich was sanctioned on Thursday, but there are numerous bidders willing to pay over £2billion for the club, if the Russian agrees to terms dictated by the government.
The government regard a quick sale as the best outcome for Chelsea and its fans, but for that to happen Abramovich would have to agree to writing off loans of over £1.5bn without receiving any of the proceeds.
The government are ready to grant a special licence to The Raine Group to complete the sale, although they would retain oversight of the process and are likely to demand that all the money raised be given away to charities linked to Ukraine.
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