Abramovich dipped into black coffers for Chelsea FC
Is Chelsea FC threatened with expulsion from the Premier League in the worst-case scenario? At least that's what one financial expert suspects. Research has revealed how Roman Abramovich appears to have circumvented the financial rules with illegal transactions during his time as club owner.
With Roman Abramovich's billions, Chelsea FC has advanced to the top tier of European soccer. Two Champions League titles and two Europa League triumphs bear witness to this, while in England the Londoners won five of their six championships in the Abramovich era. In total, there were 21 titles to celebrate in 19 years before Abramovich sold the traditional club shortly after the Russian invasion of Ukraine and as a result of the sanctions against him in spring 2022.
Research by German-language and international media now shows that the Russian oligarch, who also holds Israeli and Portuguese citizenship, apparently made these successes possible with the help of black coffers and secret contracts. ZDF headlines the findings from "Cyprus Confidential" with the following sentence: "Secret contracts show how Russian oligarchs in Cyprus use letterbox companies to increase their money and influence the West."
The transfer of Eden Hazard is cited as an example of this hidden business. The then 21-year-old had risen to stardom at OSC Lille in France and was able to choose his new club almost freely in the summer of 2012. Hazard was actually said to be leaning towards Arsenal FC, Chelsea's city rivals. This is what Hazard's former advisor John Bico-Penaque told a Belgian newspaper. Nevertheless, the Belgian international moved to the Blues shortly afterwards for around 35 million euros. According to Bico-Penaque, the change of heart was at his instigation.
Repeated payments from black coffers
The Austrian newspaper "Standard" now reports that "previously unpublished documents shed new light on Bico-Penaque's veto and Hazard's transfer". The documents relate to secret payments in the millions that Bico-Penaque received - but not from Chelsea FC, "as would have been customary and permitted", but from Abramovich himself.
Nine months after the transfer, a letterbox company belonging to Abramovich had concluded a secret contract with a company owned by John Bico-Penaque. According to ZDF, around seven million euros were spent on "consultancy services in the field of sports research and advice", although no more specific reasons were given. Bico-Penaque himself did not comment on this when asked.
Der Spiegel concludes: "The billionaire apparently avoided the club accounts of Chelsea FC - which is against the rules. And, as current research shows, there was a system to this: Abramovich paid out of his black cash box time and time again during his time as Chelsea owner."
According to the rules, Chelsea FC should have borne these costs themselves and, above all, reported them in their balance sheets in order to comply with the requirements of international and national soccer associations. ZDF quotes Christian Müller, the former head of finance of the German Football League (DFL), according to whom "all expenses in connection with player transfers must be shown in the club's profit and loss account".
What happened with Antonio Conte?
The collaboration with coach Antonio Conte is cited as another example of secret contracts and hidden payments. The Italian moved to Chelsea FC in 2016 and won the championship in his first season with just three match days to go. Shortly afterwards, Conte's contract was adjusted: with a massive salary increase for the same term.
According to Der Spiegel, a letterbox company owned by Abramovich bought into the company of player consultant Federico Pastorello on the day the agreement was announced. "According to his own statements, he was involved in the negotiations between Antonio Conte and Chelsea", ZDF reported. According to the "Standard", around 11.3 million euros are involved, which could have been paid as a bonus for the consultant or even for Conte. The parties involved have not commented on this.
When asked by ZDF, the new owners of Chelsea FC explained that "there may have been incomplete financial reports on the transfers made during Abramovich's time". However, as a result of the change of ownership, none of the people involved are still active at the club. Rather, Chelsea had "proactively reported these matters to all relevant soccer regulators" and were seeking clarification.
Kieran Maguire, a financial expert who has been observing and evaluating the payment flows of English soccer clubs for some time, suspects that a possible penalty could be severe. In the program "Frontal 21" on ZDF, he says that "a points deduction is most likely". However, he also considers "the worst consequence" for Chelsea FC to be possible: "Expulsion from the Premier League." UEFA also has its say and announces that it will initiate new proceedings against the Blues if new findings emerge.
- Despite the recent change of ownership at Chelsea FC, the club is under scrutiny due to allegations of illegal transactions during Roman Abramovich's tenure, particularly in relation to his use of funds from 'black coffers' and secret contracts, as highlighted by investigations in Cyprus.
- Chelsea FC's acquisition of Eden Hazard in 2012 raised eyebrows, with reports suggesting repeated payments from Abramovich's private funds to Hazard's advisor John Bico-Penaque, bypassing the usual transfer procedures and potentially breaking financial rules.
- Amid these allegations, the future of Chelsea FC in England's Premier League is at stake, with financial expert Kieran Maguire suggesting that expulsion could be a worst-case scenario if the club is found to have violated financial rules regarding player transfers.
Source: www.ntv.de
