Chelsea takeover to go ahead following resolution of legal issues regarding structure of payments

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Chelsea have resolved legal issues after complaints from the UK Government over the structure of the payments following a takeover.

It was felt that a deal could be 'timed out' or 'fall apart' due to concerns around where the £2.5 billion ($3.2bn) funds will end up.

However, a suitable legal structure is understood to have been put in place, with the Premier League ready to approve the Todd Boehly-led consortium's acquisition as early as this week.

What was the issue with Chelsea's takeover?

Everything regarding the private equity-backed Boehly takeover has been moving smoothly through each stage of the process.

However, there are concerns about the political tension between sanctioned current owner Roman Abramovich and the Department for Culture, Media and Sport (DCMS).

“Two big sticking points remain - where exactly the proceeds of the sale will be held, and what legal guarantees government will be given about the money going to good causes,” a source within DCMS said.

In a statement to the BBC, an insider added: “Essentially, despite committing to all proceeds going to good causes in public, Abramovich seems unwilling to give the same legal commitments, which would have backed up his public statements of about a week ago, that in the deal neither he nor his affiliates could basically try and stake a claim to that unpaid debt between Fordstam and Camberley.

“A deal which would allow the cash to be diverted during the deal would be a breach of sanctions and is seen as a red line for ministers.

“There are deadlines at the end of this month and the start of June, which would either see the club booted out of European competition or the Premier League entirely. But a good chunk of the sale needs to be done this week or next.”

The problem related to guarantees that Abramovich wouldn't profit directly and concerns around the complex structure of companies that he uses to run Chelsea.

However, much of these fears have now been allayed, with the proceeds of the sale to end up with a charity set up to help victims of Russia's invasion of Ukraine.

When will the Chelsea takeover be completed by?

The takeover could go through this week or early next week, with slight delays throughout the last seven days slowing the process.

The aim has always been to complete it by May 31, which is when the current special operating licence ends.

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The Premier League is due to meet in early June to issue new licences for next season and that could represent a hard deadline that is expected to be easily met.

Furthermore, the Blues will want to begin work on new signings ahead of pre-season, which is to begin on July 2.

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