Todd Boehly's Chelsea takeover still has a major hurdle to overcome

The Government will intensify talks with Todd Boehly and Chelsea this week, as ministers are yet to be fully satisfied by renewed Roman Abramovich claims that he will not profit.

Despite the club putting pen to paper on an agreement with Boehly on Friday, there remains tension with Whitehall over the £1.6 billion loans in the club. The Abramovich camp released two statements in recent days via Chelsea which attempted to dismiss suggestions that he was reneging on a pledge to write off the debt.

But even after fresh promises that every penny of the initial £2.5bn sale would go to charity, there remains doubt over how the money will be paid into a foundation destined for Ukraine. Ministerial sources maintained on Saturday that there remains an "incredibly complex" situation to unravel. The Treasury would also want to scrutinise how the charitable funds will be eventually spent.

Abramovich's people say he launched his own process of setting up a foundation for victims of the war after putting the club up for sale on March 2. He appears to still be hopeful of having some input over the flow of funds as he believes the Government should not be allowed to freeze the debt as it is owed to offshore accounts.

The Government, however, is maintaining its position that the takeover cannot go through while there is any doubt he can receive the money. As Telegraph Sport reported earlier this week, Whitehall will consider an emergency option of creating a backstop in talks, allowing the deal to go through, while the dispute around the loan continues.

Another potential hurdle before an amended licence is granted for the sale are assurances that any links to Abramovich will come to an end when the Boehly-led consortium take control. Chelsea and Boehly will be asked to address concerns that Chelsea’s chairman Bruce Buck, who is believed to have played a key part in negotiations, and director Marina Granovskaia, could stay on at the club.

Buck and Granovskaia have longstanding ties to Abramovich, who put the club up for sale in the early days of Vladimir Putin’s invasion of Ukraine and has since been hit with sanctions by UK authorities over his ties to the Russian president.

Buck, an American lawyer, is also believed to have been closely involved in the statement penned by the Abramovich camp on Thursday, hitting back at suggestions he was no longer willing to write off the loan.

In response to Government concern raised this week, the Russian's spokesperson had said: "Firstly, Mr Abramovich’s intentions in relation to gifting the proceeds from the Chelsea sale to charity have not changed."

The claim was repeated in a statement in the early hours of Saturday after Los Angeles Dodgers co-owner Boehly finally won the race to buy the Blues, amid the most public major sports franchise takeover in history. But Premier League and Government approval is now required to rubber-stamp the takeover.

“Of the total investment being made, £2.5bn will be applied to purchase the shares in the club, and such proceeds will be deposited into a frozen UK bank account with the intention to donate 100 per cent to charitable causes as confirmed by Roman Abramovich," a statement said.

“UK Government approval will be required for the proceeds to be transferred from the frozen UK bank account. In addition the proposed new owners will commit £1.75bn in further investment for the benefit of the club.

“This includes investments in Stamford Bridge, the academy, the women’s team and Kingsmeadow and continued funding for the Chelsea Foundation. The sale is expected to be complete in late May subject to all necessary regulatory approvals. More details will be provided at that time.”

Eldridge Industries chief executive Boehly was in London on Friday night, and attended Chelsea’s Premier League clash with Wolves, flanked by his lawyer.

The Boehly consortium are understood to have agreed to clauses that block the payment of dividends or management fees until 2032, also barring the sale of any Chelsea shares for 10 years.

Russian-Israeli billionaire Abramovich has owned Chelsea since 2003, steering the club to 21 trophies in his 19 years at the Stamford Bridge helm. The signed purchase agreement represents a major step forward in the Chelsea takeover that has moved apace since March 2 when Abramovich put the club up for sale amid Russia’s continued invasion of Ukraine.

Abramovich was then sanctioned by the UK Government on March 10, with Downing Street claiming to have proven his links to Russian leader Vladimir Putin.

The club must be sold by the May 31 deadline, when the Government’s temporary licence for Chelsea expires.