After the UK Government sanctioned Chelsea‘s owner, Roman Abramovich, the club’s shirt sponsor, Three, has suspended its £40 million arrangement with the Blues.
Under the terms of the sentence, which was announced by Prime Minister Boris Johnson, Abramovich’s assets would be frozen and he will be barred from traveling. Chelsea’s future, including the club’s huge sponsorship deals, has been cast into doubt as a result of the announcement.
About the Suspension of their Deal
During the coronavirus outbreak, Chelsea made £154 million in commercial deals last year. Before Covid’s arrival, the club had received £200 million in sponsorship.
Analysts warn that other sponsors may rapidly follow Three’s lead, removing their emblem from shirts till further notice and reviewing their partnership with the club to avoid being associated with a Russian businessman accused of profiting from his relationship with President Vladimir Putin.
Three UK’s suspension comes just hours after the business announced support packages for Ukrainian immigrants landing in the UK, including pre-paid 30-day pay-as-you-go sim cards.
Following Putin’s ruthless invasion of Ukraine, which began two weeks ago today, brands all over the world have been keen to disassociate themselves from Russia. The situation in Ukraine is deteriorating daily, with Putin being accused of war crimes after his forces repeatedly bombarded communities, killing civilians, and destroying a children’s hospital.
Within hours of Abramovich’s sanction, ‘Three’ was the first to blink. According to The Athletic, the firm has admitted it is reviewing the situation and in discussions with Chelsea FC.’
About the Other Brands
Other major businesses, like Nike, which has a £55 million kit agreement with Chelsea, as well as Hyundai and Hublot, all of which have deals worth over £15 million, will have to decide what to do next.
Chelsea’s owner has already been sanctioned, and the club has been heavily chastised after fans screamed Abramovich’s name during the minute’s applause for Ukraine ahead of Saturday’s Premier League match against Burnley at Turf Moor.
During periods of solidarity with Ukraine, the Chelsea Supporter’s Trust has had to ask all Chelsea fans not to sing the name of owner Roman Abramovich. As a result of Abramovich’s sentence, Chelsea is now one of the assets that have been blocked. The government has announced that it will issue a special license that will allow fixtures to be completed, employees to be paid, and current ticket holders to attend games.
Season ticket holders can still attend games, but no more tickets will be sold, no transfers will be allowed, and the club shop will close. In addition, the club is only allowed to spend £20,000 on away travel. The permit is valid until May 31.
The anticipated £3BN sale of the club by Abramovich, which was disclosed last week, has also been put on hold. The sale can only go forward if Abramovich can show the UK authorities that he will not benefit directly from the deal.
Chelsea’s Current Situation
The owner of Chelsea is one of seven oligarchs who have been punished with new penalties. Igor Sechin, a billionaire, and Oleg Deripaska, a former business colleague of Abramovich, are also on the list. Chelsea has been granted a special license to continue playing because of its position as a significant cultural asset,’ but its owner will be denied any profits.
The club is no longer allowed to sell the home or away tickets, and only fans who have already purchased tickets – including 28,000 season ticket holders – are permitted to attend games.
Because Champions League tickets are often acquired separately from season tickets, games may be played essentially behind closed doors. Chelsea travels to Norwich today and hosts Newcastle on Sunday. Ministers attempted to convince the club that it would not be affected unduly.
Chelsea was purchased by Abramovich in 2003. Since then, his fortune has financed Chelsea’s most successful time in history, with the club winning 21 trophies, including five Premier League crowns and two Champions League wins. The club owns him for £1.5 billion.
Among a slew of suitors for the Champions League champions, British billionaire Nick Candy was the latest high-profile business magnate to put his hat in the ring for Chelsea’s sale. More than ten reputable parties are believed to have been compiling bids, including Swiss businessman Hansjorg Wyss and American investor Todd Boehly.
Read: Chelsea’s new owners: Analysing 5 different prospects to potentially take charge
