Chelsea future in doubt as pressure grows on Abramovich finances• Chelsea owner sells £49m worth of shares for £12m
• Suggestions that Abramovich is suffering liquidity problems
Duncan Castles
The Observer, Sunday 25 January 2009
Roman Abramovich's decision to sell mining shares suggests he might have liquidity problems.
Doubts over Roman Abramovich's financial circumstances have been fuelled by the Chelsea owner's decision to cut his stake in a Russian gold-mining company at a substantial loss. Abramovich has sold a quarter of his 40% stake in London-listed Highland Gold to business partners this month for about £12m. The shares cost Abramovich £49.1m when he bought in 13 months ago.
City experts have expressed surprise that the Russian would sell shares when their price was close to a market low yet expected to recover in the medium term. They argue that the raising of the relatively small sum of £12m suggests that Abramovich may be suffering liquidity problems, with much of his wealth tied up in shares that have fallen sharply in value, property and art.
Abramovich's representatives deny that he has difficulties with liquidity, saying that the transfer of stock to Alexander Abramov and Alexander Frolov was designed to bring the pair's expertise in directing mining companies into Highland Gold. Abramov and Frolov are co-investors in Abramovich's most important stockmarket holding, Evraz, which has suffered a still steeper decline in market value over the past 12 months.
They also insist that a series of cutbacks in Chelsea's expenditure documented by the Observer are unconnected to Abramovich's finances. Instead, they should be seen as a business-like response to the recession, as Chelsea attempt to wean themselves off their owner's substantial support by 2010.
According to Chelsea's last published accounts for the year to July 2007 the club were running £83.6m in the red. At that point they also owed Abramovich £578m in interest-free loans, repayable on a year-and-a-half's notice.The club has been sensitive to discussion of Abramovich's finances. In November,
the chief scout Frank Arnesen angered the owner by stating in an interview with a Danish newspaper that: "The credit crisis has meant that Roman has hit the financial brakes, and asked us to cut deep. We have cut down significantly on scouts and other activities." Last week, Chelsea issued a libel action against a national newspaper for alleging that Abramovich was seeking a buyer for the club, and that there has been an attempted clampdown on employees discussing club affairs with the press.
Luiz Felipe Scolari could have Michael Essien back in time for the second leg of his critical Champions League knockout tie with Juventus.
Essien, whom Scolari regards as so important to his squad he has said "I lost five players when I lost Essien", resumed training outdoors last week as part of his rehabilitation from knee surgery. The versatile Ghana midfielder is expected to return to first-team duty in six-to-eight weeks. If he continues his rapid recovery from the anterior cruciate ligament operation he underwent in September, Essien will be available for Chelsea's game in Italy on 10 March.
Essien has played in every defensive and midfield position during his three- and-a-half seasons at Chelsea. His return will allow Scolari more tactical flexibility, while relieving the weight of playing an entire campaign as holding midfielder from the developing John Obi Mikel.
Inter coach Jose Mourinho has admitted he could yet put in bids for Didier Drogba or Jermaine Jenas before the transfer window shuts. Mourinho's Inter are top of Serie A and, while the former Chelsea boss admits he is happy enough with his current squad, he is keeping tabs on the availability of both Drogba and Jenas.
"Jermaine Jenas and Didier Drogba – these are both players that I like. Drogba is a very special player for me, there is no doubt about it. We had a great relationship at Chelsea and he was an important player for me. Will something happen? I don't know. I like players adapted to my style of play, my philosophy of play. If I know them and have a good feeling from the past, it is better."