Chelsea's £150m buffer against FA fines may not be as impenetrable as initially thought, according to football finance experts. The club's corporate vehicle, Fordstam Limited, has revealed that it does not expect to receive the full £150m buffer from Clearlake, the consortium led by Todd Boehly, due to "doubts about its recoverability".
This revelation has sparked concerns among experts that Chelsea may face more severe sporting sanctions than previously expected. The FA has charged the club with 74 rule breaches related to payments to agents during Roman Abramovich's tenure, including deals involving star players Eden Hazard, Willian, and Samuel Eto'o.
The £150m buffer is a clause inserted into the takeover deal by BlueCo 22, which covers the cost of "any proceeding in relation to events which took place before the acquisition date". While this may seem like a significant financial cushion, experts argue that it could effectively be taken out of consideration if Chelsea is found guilty of breaches.
"There's no penalty for the football club at all if the sanctions are purely financial and all are effectively recovered from the sale proceeds to Fordstam," said Kieran Maguire, an associate professor in football finance. "The owners can in theory put an extra £150m into the club and be no worse off than if they'd paid the full agreed sum of £2.5bn."
However, Stefan Borson, a football finance expert and lawyer, believes that the scale of the holdback amount could indicate that Chelsea is more likely to face sporting sanctions. "There's a question mark there as to why the size of the provision is so big," he said.
The revelation has also highlighted the complexities surrounding the £2.5bn deal, including the fact that Chelsea received £4.8m in bonuses for its executives and lawyers involved in the takeover. The accounts have also confirmed that the proceeds of the deal are still frozen in a bank account, with discussions ongoing with the Treasury to release the funds.
In theory, the sum could be reduced by £1.5bn, but repayment would require approval from the Office of Financial Sanctions Implementation. Roman Abramovich has also pledged to write off this loan.
As Chelsea prepares for its FA hearing, one thing is clear: the club's financial cushion may not be as bulletproof as initially thought.
This revelation has sparked concerns among experts that Chelsea may face more severe sporting sanctions than previously expected. The FA has charged the club with 74 rule breaches related to payments to agents during Roman Abramovich's tenure, including deals involving star players Eden Hazard, Willian, and Samuel Eto'o.
The £150m buffer is a clause inserted into the takeover deal by BlueCo 22, which covers the cost of "any proceeding in relation to events which took place before the acquisition date". While this may seem like a significant financial cushion, experts argue that it could effectively be taken out of consideration if Chelsea is found guilty of breaches.
"There's no penalty for the football club at all if the sanctions are purely financial and all are effectively recovered from the sale proceeds to Fordstam," said Kieran Maguire, an associate professor in football finance. "The owners can in theory put an extra £150m into the club and be no worse off than if they'd paid the full agreed sum of £2.5bn."
However, Stefan Borson, a football finance expert and lawyer, believes that the scale of the holdback amount could indicate that Chelsea is more likely to face sporting sanctions. "There's a question mark there as to why the size of the provision is so big," he said.
The revelation has also highlighted the complexities surrounding the £2.5bn deal, including the fact that Chelsea received £4.8m in bonuses for its executives and lawyers involved in the takeover. The accounts have also confirmed that the proceeds of the deal are still frozen in a bank account, with discussions ongoing with the Treasury to release the funds.
In theory, the sum could be reduced by £1.5bn, but repayment would require approval from the Office of Financial Sanctions Implementation. Roman Abramovich has also pledged to write off this loan.
As Chelsea prepares for its FA hearing, one thing is clear: the club's financial cushion may not be as bulletproof as initially thought.
] 
] Can't trust that £150m buffer? Sounds like Chelsea's got some 'splainin' to do!
] Fordstam Limited's doubts about the recoverability of the buffer? That's like saying "Hey, we might not pay our debts"...
] And now experts think they might face sporting sanctions instead of just financial penalties? Oh no!
] Guess you could say Chelsea's got a lot to lose if they get found guilty... and it's not just their reputation!
. If they get hit with major sporting sanctions, that cash might not even matter. And what's up with the huge bonus for their execs and lawyers involved in the takeover? 
It just feels like there's some fishy business going on. The fact that Roman Abramovich is willing to write off his own loan, but the other cash isn't getting unfrozen until it gets approval from the Treasury... yeah, it all sounds a bit dodgy 
.
I mean, if that £150m buffer is like, totally wiped out due to doubts about recoverability, then Chelsea's in for a world of trouble 
. The FA is already charging them with 74 rule breaches, so this just adds fuel to the fire 
. It's like they say in The Office - "You can't keep a good man down"... or in this case, you can't keep a bad club from getting fined