The Premier League is scrutinising Chelsea’s signings of Willian and Samuel Eto’o as part of a wider probe into offshore payments during Roman Abramovich’s era.
Telegraph Sport reported more than a year ago how concerns over a wide array of historic payments had been raised prior to the Todd Boehly-led takeover. Just days before the £2.5 billion deal, £100 million was wiped off the sale price to cover “unforeseen liabilities”.
Third-party sources involved in the deal suspected immediately that Chelsea could be left at risk of profit and sustainability breaches over historic payments. The club vehemently dismissed such a prospect at the time.
However, investigations by the league were launched after Chelsea’s new owners subsequently voluntarily reported financial transactions between 2012 and 2019 to the FA, Premier League and Uefa.
It has now emerged, initially via a report in The Times newspaper, that the incoming transfers of Brazilian midfielder Willian and Cameroonian forward Eto’o, both from the Russian club Anzhi Makhachkala in August 2013, are part of the investigation.
Payments may have been made to “Russian entities” as Willian joined Chelsea for £30 million before Eto’o joined on a free transfer the day afterwards. There is no suggestion either player had any knowledge of such payments.
The Premier League, which has powers to potentially dock points or heavily fine, is understood to be interrogating millions of pounds paid to around six offshore companies.
Chelsea said in a statement: “These allegations pre-date the club’s current ownership. They concern entities that were allegedly controlled by the club’s former owner and do not relate to any individual who is presently at the club.
“Chelsea FC’s ownership group completed its purchase of the club on May 30, 2022. During a thorough due diligence process prior to completion of the purchase, the ownership group became aware of potentially incomplete financial reporting concerning historical transactions during the club’s previous ownership. Immediately following the completion of the purchase, the club proactively self-reported these matters to all applicable football regulators.
“In accordance with the club’s ownership group’s core principles of full compliance and transparency the club has proactively assisted the applicable regulators with their investigations and will continue to do so.”
Checks by regulators after the club effectively became a frozen asset in March last year prompted Chelsea to declare potentially huge unpaid liabilities to Boehly at the 11th hour. The American owner, who partnered with, among others, US private equity firm Clearlake Capital, was subsequently allowed to hold back almost 10 per cent of the purchase price.
During the entire Abramovich era, Chelsea’s financial ecosystem had been heavily reliant on offshore payments between the club and a series of interconnected companies. In his last full year of full ownership, Fordstam Ltd injected around £150 million and withdrew around £130 million to end the year loaning the club an overall £19.9 million, and taking the total related-party loans to £1.514 billion. The loans were due to be repaid to Camberley International Investments Ltd, a Jersey-based entity which was the target of an asset freeze raid by authorities last summer. Abramovich had already agreed to write off the debt when he put the club up for sale at the start of March last year.
The Premier League declined to comment. The club previously said after a Uefa fine that “Chelsea has fully cooperated and assisted Uefa with its investigation of these matters and the club has entered into a settlement agreement with Uefa”.
Due to Abramovich’s status as a sanctioned Russian, the fund is supposed to be ending up in a foundation for Ukraine war victims – although it remains frozen in an account.
