February 2022 was a real upheaval for Chelsea. Owned for around 18 years by Russian oligarch Roman Abramovich, the English club saw the latter forced to sell his club following the war in Ukraine provoked by Russia and which led to international sanctions. Since then the club has passed into the hands of Todd Boehly who launched a new cycle. Sportingly, it is still struggling to take shape with a twelfth place in the Premier League last season and only a tenth place in the Premier League during the current year. While we sense notable progress in the game like the 4-4 won against Manchester City last Sunday, a new grain of sand has just entered the boot of the American businessman. Indeed, Chelsea is the subject of an investigation into various transfers made during the Roman Abramovich era.
The cases of the transfers of Samuel Eto’o and Willian in 2013 from Anzhi Makhachkala respectively freely and for 35 million euros have already been investigated. Strange payments were found 9 years later at the time of the change of ownership. “Sources close to the matter said payments to at least six offshore companies had been identified, raising questions about whether they were linked to the transfer of players. The alleged payments, which amount to seven figures, do not appear to have been recorded as part of the club’s annual financial reports to the FA, Premier League and UEFA, which would constitute a breach of their rules. wrote The Times two more weeks ago. This Wednesday, The Guardian tells us more with the publication of a more detailed investigation on this subject.
A deal worth tens of millions of pounds
First of all, we learn that these two transfers are not the only ones to have benefited from this practice since we can add the agent of Eden Hazard, an associate of the former Blues coach Antonio Conte and several managers from Chelsea. It is therefore on numerous issues that the English club is one of the entities which is the subject of a more global international investigation known as Cyprus Confidential. Over the period from 2012 to 2019, payments totaling tens of millions of pounds were channeled through offshore companies owned by Roman Abramovich. This was notably the case for Eden Hazard agent John Bico-Penaque, whose documents dating from 2013 suggest that Leiston Holdings, which is based in the British Virgin Islands, paid €7 million to a Dubai-based company called Gulf Value FZE. The official reason for this transaction: “consulting services (…) relating to (…) sports research and consultancy.” The contract was signed on behalf of the company by… John Bico-Penaque and there is no presumption that the payment was declared to sporting entities such as the English federation.
This case is not the only one, because questionable payments also concern the Association des Jeunes Espoirs de Bobo, the former club of Bertrand Traoré, but also Zoran and Vladica Lemić. The latter allowed the arrivals at Chelsea of ​​Arjen Robben, Branislav Ivanović, Nemanja Matić and Carlo Ancelotti. Therefore, the fact of going through companies outside the club suggests infringements within the framework of Financial Fair Play. “If a club were to hide its expenses (…) by paying these sums through other entities, it is conceivable that it could contravene FFP rules. You would effectively bypass your regulatory requirements, which limit your ability to spend, and instead spend through an offshore company. Any opportunity to gain an unfair advantage distorts the competition in favor of a particular club and undermines the integrity of football on a fundamental level. notably declared Samuel Cuthbert, sports lawyer at Outer Temple Chamber when he was questioned by the English media.
Chelsea can lose points
Chelsea also reacted to this subject and the new management proved its good faith via one of its spokespersons: “These allegations predate the current ownership of the club. They are based on documents which have not been presented to the club and do not relate to anyone currently at the club. The buyers became aware of “potentially incomplete financial reports regarding historical transactions during the club’s previous ownership”. Immediately following the completion of the purchase, the club proactively reported these issues to all relevant football regulators. In line with the club’s ownership group’s core principles of compliance and full transparency, the club has proactively assisted relevant regulators with their investigations and will continue to do so.”
As the investigation continues to unfold, Chelsea know that sanctions could fall on the club. Already, UEFA has fined the club ÂŁ8.6 million following incomplete financial information at the time of Todd Boehly’s takeover. However, UEFA’s powers remain limited, as it can only examine evidence dating back three years. For its part, the English Federation continues its investigation and could take action. The Blues risk a points deduction for unfair competition. If for the moment, the situation still remains unclear regarding all the sanctions that the English club risks, one thing is clear, certain financial movements from the Roman Abramovich era continue to agitate the club and risk handicapping it in the future. ‘future…
