Research into secret contracts
Abramowitsch reached into slush funds for Chelsea FC
November 15, 2023, 5:13 p.m
In the worst case scenario, is Chelsea FC threatened with exclusion from the Premier League? At least that’s what one financial expert suspects. Research reveals how Roman Abramowitsch appears to have circumvented financial regulations with illegal transactions during his time as club owner.
With Roman Abramowitsch’s billions, Chelsea FC has advanced to the top level of European football. Two Champions League titles and two Europa League triumphs are evidence of this; in England, the Londoners won five of their six championships in the Abramovich era. There were a total of 21 titles to celebrate in 19 years before Abramowitsch sold the traditional club shortly after the Russian invasion of Ukraine and as a result of the sanctions against him in the spring of 2022.
Research by German-speaking and international media now shows that the Russian oligarch, who also has Israeli and Portuguese citizenship, apparently made these successes possible with the help of slush funds and secret contracts. ZDF overwrites the findings “Cyprus Confidential” with the following sentence: “Secret contracts show how Russian oligarchs in Cyprus want to increase their money through shell companies and influence the West.”
The transfer of Eden Hazard is cited as an example of these hidden transactions. The then 21-year-old had become a star at OSC Lille in France and was able to choose his new club almost freely in the summer of 2012. Hazard is actually said to have gravitated towards Arsenal FC, Chelsea’s city rivals. This is what Hazard’s former advisor John Bico-Penaque reported to a Belgian newspaper. Nevertheless, the Belgian international moved to the Blues shortly afterwards for around 35 million euros. According to Bico-Penaque, the change of heart came at his instigation.
Repeated payments from slush funds
The Austrian one “Default” now reports that “previously unpublished documents cast Bico-Penaque’s veto and Hazard’s move in a new light.” It’s about secret payments of millions that Bico-Penaque received – but not from Chelsea FC, “as would have been usual and permitted”, but from Abramowitsch personally.
Nine months after the transfer, one of Abramovich’s shell companies concluded a secret contract with a company owned by John Bico-Penaque. Dem ZDF According to the report, around seven million euros were spent on “consultancy services in the area of sports research and advice”, but no more specific reason was given. Bico-Penaque himself did not comment on this when asked.
The “Mirror” concludes: “The billionaire apparently avoided the club accounts of Chelsea FC – which is against the rules. And, as current research shows, there was a system: Abramowitsch paid over and over again from his slush fund during his time as Chelsea owner.”
According to the rules, Chelsea FC would have had to bear these costs itself and, above all, list them in its balance sheets in order to comply with the requirements of the international and national football associations. ZDF quotes Christian Müller, the former finance director of the German Football League (DFL), as saying that “all expenses related to player transfers must be reflected in the club’s profit and loss account.”
What happened to Antonio Conte?
Another example of secret contracts and hidden payments is the collaboration with coach Antonio Conte. The Italian moved to Chelsea FC in 2016 and won the championship in his first season with just three match days to go. Shortly afterwards, Conte’s contract was adjusted: with a massive salary increase but the term remained the same.
According to “Spiegel”, one of Abramowitsch’s shell companies bought into the company of player agent Federico Pastorello on the day the agreement was announced. “According to his own statements, he was involved in the negotiations between Antonio Conte and Chelsea,” says ZDF. According to “Standard” it’s about 11.3 million euros, which could have flowed as a bonus for the consultant or even for Conte. Those involved did not comment on this.
When asked by ZDF, the new owners of Chelsea FC explained “that there may be incomplete financial reports on the transfers that were made during Abramovich’s time.” However, as a result of the change of ownership, none of the people involved are no longer active at the club. Rather, Chelsea “proactively reported these matters to all relevant football supervisory authorities” and is seeking clarification.
A possible penalty could be severe, suspects Kieran Maguire, who as a financial expert has been observing and evaluating the cash flows of English football clubs for some time. In the show “Frontal 21” On ZDF he says that “a point deduction is most likely”. However, he also believes that “the worst possible consequence” for Chelsea FC is “exclusion from the Premier League.” UEFA also has its say and announces that it will initiate new proceedings against the Blues if new findings arise.