Roman Abramovich’s £1.6bn U-turn could lead to Chelsea Doomsday scenario

Abramovich is demanding his £1.6bn loan to Chelsea is repaid, making a sale virtually impossible – and that could see the Blues barred from the Premier League if not resolved

If Roman Abramovich wants his money back, then all bets are off for Chelsea.

Because Abramovich demanding that his £1.6billion loan is repaid makes it virtually impossible for the UK government to green-light the sale of the club. Prime Minister Boris Johnson himself went public insisting the Russian billionaire must not receive a penny of the proceeds. But there are now fears that Abramovich will go back on his promise to write off the money he has loaned Chelsea, throwing the whole process into chaos.

That is a huge problem for the club just when it looked like LA Dodgers co-owner Todd Boehly’s consortium was about to buy the Blues. Boehly was selected as the preferred bidder by US merchant bankers the Raine Group, who are in charge of the complex sale. His group are now in a five-day period of exclusive talks to get the deal done – but the issue of Abramovich’s loan is a massive potential sticking point.

The Chelsea owner, who is currently sanctioned by the British government, initially vowed to write off the loan. He also vowed to donate all the proceeds from the sale into a new charity for the victims of the war in Ukraine. But that raised the prospect of some money ending up in the hands of wounded Russian soldiers – something the UK could not stomach. The government must now decide whether to freeze the money or divert it towards their own charitable causes.

But what happens to the loan remains to be seen – with ministers digging in on their position that no money ends up back in Abramovich’s pocket. That raises the prospect of a doomsday scenario for the club, whose operating licence runs out on May 31. If Chelsea has not been sold by then, it would automatically be barred from competing in next season’s Premier League. What possible future there is for the Stamford Bridge outfit if that happens remains to be seen.

But with Abramovich and the UK government heading for a stand-off, whoever blinks first could decide whether Chelsea has a future at all. Those close to Abramovich says he has been advised that government sanctions block him writing off the loan as planned. But any potential work-around raises the prospect of the money finding its way back into his pocket. It is all a complete nightmare for Thomas Tuchel and his players, who are just as in the dark as everyone else on what happens next.

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But the whole sorry process is already harming the club, whose major revenue streams remain frozen as a result of sanctions. Chelsea were powerless to stop Antonio Rudiger quitting the club as soon as they were told they could not offer new contracts to players.

And the futures of Mason Mount and Reece James are also now in doubt as both are due new deals but talks cannot get underway. Tuchel insists the growing uncertainty is not affecting his side, but they lost 1-0 at Everton on Sunday and have only managed one win in their last four games.

The longer it goes on the more difficult it becomes – not least for the hundreds of Chelsea employees currently fearing for their livelihoods. And with the clock ticking down and the club on “borrowed time” according to Culture Secretary Nadine Dorries, something has to give.