Given its reputation in the game, many people will want to support Chelsea, but football financial expert Kieran Maguire believes Roman Abramovich’s £3 billion valuations are too high.
“That seems disproportionate since it values Chelsea higher than Manchester United, and we know their value because we can look at their stock exchange pricing,” he said.
“Chelsea has a smaller stadium, they don’t have the same worldwide fan base as Manchester United, and there are persistent concerns at Stamford Bridge.
“The majority of commentators believe it isn’t large enough to create the money that someone might seek in the future.” Given its location in London, there is no space to expand Stamford Bridge, therefore moving somewhere in the capital would be prohibitively expensive.”
Abramovich announced on Wednesday that he intends to sell Chelsea and that he will not ask for “any loans to be repaid,” which is crucial for the club.
“Chelsea cannot pay back the debts,” Maguire remarked. If you check their most current balance sheet, they had around £16 million in the bank, indicating that they didn’t have the financial means to repay the loans. It’s not like Roman Abramovich ever intended to default on the loans
“In terms of the sale, I believe the loans, according to the statement, will be written off, and the proceeds of the sale, less any fees spent, will go to the facilities and charities that Roman Abramovich is attempting to direct his money to.”