Dream fulfilled

Russian achieves ambition by taking over Chelsea

LONDON (Reuters) -- Russian billionaire Roman Abramovich has fulfilled a long-term ambition to own a major European club by purchasing English Premier League Chelsea.

Chelsea announced Tuesday that Abramovich had agreed to buy the company that owns the west London club in a deal which values it at nearly 60 million pounds (US$100 million).

Although Chelsea havs won the English league only once, in 1955, it has qualified for next season's lucrative European Champions League and remains one of the country's glamor teams.

"We have the resources and ambition to achieve even more given the huge potential of this club," Abramovich said in a statement. Chelsea was rated the sixth richest club in the world by the magazine World Soccer last month.

The 36-year-old Abramovich is a major shareholder in the world's fourth largest oil producer and a member of the lower house of the Russian parliament.

"Roman Abramovich has had a lifetime's interest in sport and owned a successful Russian ice hockey team for a number of years," said a statement issued by Citigate on behalf of Abramovich's newly-formed English company.

"He also has a long-held ambition to own one of Europe's leading football teams."

Shares soar

Losses at Chelsea almost trebled in the first six months of the financial year to the end of December and total debt is estimated by Deloite & Touche Sport at around 80 million pounds.

Abramovich agreed with Chelsea chairman Ken Bates on Tuesday to buy more than half the shares of Chelsea Village, which also operates a lavish hotel and banqueting complex near the Stamford Bridge ground in Chelsea, one of London's trendiest areas.

Under the cash offer, Abramovich has agreed to purchase 84.9 million Chelsea Village shares at 35 pence, just over half of its entire issued share capital.

His offer is a 15 percent premium to Chelsea's closing share price on June 30. The shares soared over 40 percent in value in early trading on Wednesday.

Top English clubs have been hit by soaring wages and growing debts in recent years as they spend heavily in a bid to qualify for the Champions League.

Former British Sports Minister Tony Banks expressed concern at the deal and called on the government to investigate.

"I want to know whether this individual is a fit and proper person to be taking over a club like Chelsea," Banks told the BBC.

"I would have preferred that the takeover of Chelsea had been done after these questions were answered. A sale has been arranged to an individual we know nothing about."

Chelsea is the London club most closely associated with the Swinging Sixties and has traditionally played with style and elan. Recent managers include Dutchman Ruud Gullit and Italy's Gianluca Vialli and its playing squad include France captain Marcel Desailly and Italian favorite Gianfranco Zola.

Law graduate

According to the Citigate statement, Abramovich graduated in law from the Moscow State Law Academy.

"In 1999, he was elected to the lower house of the Russian parliament, the State Duma," it said.

"In 2000 he joined the Duma's Committee on Northern and Far East Issues and later that year founded the charity Pole of Hope to conduct projects in Chukotka in north east Russia. In January 2001 he was inaugurated as governor of Chutkotka.

"Mr Abramovich is one of the major shareholders in Sibneft. In May 2003 Sibneft announced a merger with Yukos Oil, Russia's second largest oil producer to create Russia's largest and the world's fourth largest oil producer."

Russian Football Union vice-president Valery Draganov said Abramovich was now likely to expand his soccer interests by buying a Russian club.

"This purchase means a test of strength in a new business and a step towards buying one of the Russian clubs, I'm sure," Draganov told Interfax on Wednesday.

 

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