No summer spending spree for Chelsea?

by Mystical Mike

Friday, May 21st, 2010

Carlo Ancelotti’s men may have had their most successful season on the pitch but off the pitch is a slightly more worrying matter.

Despite reports that the Russian billionaire had written off the £726 million loan, he is, in fact, still owed the money.

Chelsea’s accounts for 2008-09 revealed that Abramovich’s enormous loan to the club he owns had been converted into shares.

A recent report in the Guardian shows that since Abramovich made the loan to a holding company, rather than the West London club itself, his debt is yet to be repaid.

Chelsea’s debt to the holding company was converted into shares, but the holding company’s debt to Abramovich remains at £726m.

“The loan is interest free, but it is repayable if Abramovich gives 18 months’ notice,” writes David Conn in The Guardian.

“The Russian could still demand the money back some day, either if the club is making a profit, or if he were to sell it.
“He has not, in fact, written off the huge loans he has made on his Chelsea adventure.”

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  • midgit

    sign t in brazil)orress kaka pato stephen taylor miranda and hernanes (plays for sau paula)

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