Chelsea have £150m buffer against fines from FA, say football finance experts

Fordstam Limited, the corporate vehicle that housed Chelsea FC during Roman Abramovich's ownership, has revealed that it does not expect to receive £150 million from the sale of the club to Clearlake, a consortium led by Todd Boehly. This is due to a "holdback amount" clause in the 2022 takeover deal, where £2.5 billion was paid, with a portion withheld for five years to cover costs from pre-acquisition events, such as potential penalties for rule breaches.

The Football Association (FA) has charged Chelsea with 74 breaches related to payments to agents during Abramovich's tenure, as highlighted in a 2023 investigation involving transfers of players like Eden Hazard, Willian, and Samuel Eto'o. The £150 million holdback, higher than the previously reported £100 million, is designed to indemnify against financial penalties and consequential losses from any proceedings, including sporting sanctions.

Football finance experts, including Stefan Borson and Kieran Maguire, suggest that Fordstam's admission and the size of the holdback amount indicate that sporting sanctions, such as points deductions or suspensions from competitions, are more likely than previously thought. They note that the clause covers not only fines but also potential losses from outcomes like exclusion from European competitions or reduced merit payments, reducing the financial impact on Chelsea.

As a result, any financial penalty imposed on Chelsea would be largely absorbed by the holdback amount, meaning the club and its new owners would feel minimal direct financial consequences, as this was factored into the initial sale price.