Chelsea

Thursday's sanctions against Roman Abramovich by the UK government have directly impacted Chelsea. Here's what you need to know about the situation.

Sources have told ESPN that the Department for Culture, Media and Sport would be clear that any such licence would not allow Abramovich to benefit from the sale of the club while he remains subject to sanctions. There have even been suggestions Chelsea could be placed into administration if they run out of cash -- an action that could lead to a points deduction -- but given the government's apparent openness to granting a licence for sale, this current stress test of the club's finances without Abramovich might not get that far. However that money can be used for things like employee wages, travel costs, taxes, payments to other clubs and matchday logistics, as outlined in Section 4 of the license the club was granted in order to remain in operation. "We intend to engage in discussions with the UK Government regarding the scope of the licence," it read. The precise destination of any proceeds would be determined in discussions with the government when the application for a sale licence is made.) The process is on hold because the immediate consequence of these sanctions is to freeze Chelsea as an asset, therefore meaning Abramovich cannot put in or take out any money of the club, or pass ownership to someone else. Raine Group, the New York merchant bank appointed to handle the sale, set a deadline of March 15 for interested parties to submit bids for Chelsea, and sources describe it as "no coincidence" given that this was also the date upon which the government could act on emergency legislation, known as the Economic Crime Bill, once it passed into law. It was always a possibility given the mounting pressure on the government to intervene -- Labour leader Sir Keir Starmer last week called outright for Abramovich to be sanctioned -- but the expectation was that, rightly or wrongly, he would be given time to sell. Bidders have since circled -- although sources told ESPN that no interested party has so far come close to matching Abramovich's £3 billion valuation -- but this government intervention casts a Chelsea sale and even the day-to-day running of the club into unprecedented uncertainty. However, sources have told ESPN that as lawyers began to work out the details of this ambiguous term, fears quickly grew that it would not stand up to scrutiny were sanctions to arrive. "This association has included obtaining a financial benefit or other material benefit from Putin and the Government of Russia." Abramovich, who bought Chelsea for £140 million in 2003, has always denied links to Putin's government, but the U.K. government offered a comprehensive and damning alternative view in a document accompanying the decision published by the Treasury's Office of Financial Sanctions Implementation.