Roman Abramovich has put Chelsea FC up for sale and will donate proceeds to a new charity that will support victims of the war in Ukraine.
Amid speculation about what would happen to the club if the UK government were to sanction its Russian owner, Abramovich had said he would hand “stewardship” to the trustees of the Chelsea FC Foundation.
However, it was unclear what this meant. Trustees reported the situation to the Charity Commission and the regulator said it was seeking more information.
In a statement, the Chartered Governance Institute UK & Ireland (CGIUKI) said that the plan “raises a number of serious charity governance concerns”.
CGIUKI added that there were “financial and reputational” risks for the charity.
“They must consider whether taking on a £500m club carrying recent losses of £153.4m will have a detrimental effect on the charity’s ability to carry out its activities, particularly given its current income of only £5m.
“Taking on the club’s reported £1.5bn loans from Mr Abramovich could result in the trustees and the foundation losing the ability to act independently, especially in the light of the present lack of clarity regarding the degree of authority, not to mention ownership, that is being transferred.”
CGIUKI also urged trustees to read the Charity Governance Code.
New charity
On Wednesday evening, Abramovich announced that he now plans to sell the club, and will not be asking for loans to be repaid.
He said: “This has never been about business nor money for me, but about pure passion for the game and club. Moreover, I have instructed my team to set up a charitable foundation where all net proceeds from the sale will be donated.
“The foundation will be for the benefit of all victims of the war in Ukraine. This includes providing critical funds towards the urgent and immediate needs of victims, as well as supporting the long-term work of recovery.
“Please know that this has been an incredibly difficult decision to make, and it pains me to part with the club in this manner. However, I do believe this is in the best interest of the club.”
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