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Chelsea owner Roman Abramovich has been sanctioned by the UK & is being forced to give up the $3 billion club.
But the real story is WILD — it includes privatization, Vladimir Putin, billions of dollars in yachts & real estate, frozen bank accounts & more.
Time for a thread
But the real story is WILD — it includes privatization, Vladimir Putin, billions of dollars in yachts & real estate, frozen bank accounts & more.
Time for a thread
1) Roman Abramovich was born in Saratov, Russia.
He grew up extremely poor and became an orphan when his parents died before he was 4 years old.
He dropped out of college, joined the army & eventually started selling rubber ducks out of his apartment.
He was making $3k a year.
He grew up extremely poor and became an orphan when his parents died before he was 4 years old.
He dropped out of college, joined the army & eventually started selling rubber ducks out of his apartment.
He was making $3k a year.
2) But his life changed in the 1990s.
All businesses in Russia were state-owned, but when the Soviet Union collapsed in 1991, these businesses were transferred to private owners.
This created Russian Oligarchs.
And one of the biggest beneficiaries was Roman Abramovich.
All businesses in Russia were state-owned, but when the Soviet Union collapsed in 1991, these businesses were transferred to private owners.
This created Russian Oligarchs.
And one of the biggest beneficiaries was Roman Abramovich.
3) Roman Abramovich & his friend Boris Berezovsky had deep relationships with the Russian government.
That enabled them to buy state-owned assets for pennies on the dollar, and the two became joint owners of the Sibneft oil group in 1995.
That made them billionaires overnight.
That enabled them to buy state-owned assets for pennies on the dollar, and the two became joint owners of the Sibneft oil group in 1995.
That made them billionaires overnight.
4) But here's the interesting part:
Roman Abramovich & Boris Berezovsky acquired Sibneft oil group for $200 million, yet the company was reportedly worth nearly $3 billion at the time.
Even crazier?
Abramovich sold his stake back to the government in 2005 for $12 billion.
Roman Abramovich & Boris Berezovsky acquired Sibneft oil group for $200 million, yet the company was reportedly worth nearly $3 billion at the time.
Even crazier?
Abramovich sold his stake back to the government in 2005 for $12 billion.
5) So how is Vladimir Putin involved?
Abramovich & Putin became friends, and when President Boris Yeltsin stepped down in 1999, Yeltsin listened to Abramovich's recommendation & appointed Putin as the new Russian President.
This would serve Abramovich well in the coming years.
Abramovich & Putin became friends, and when President Boris Yeltsin stepped down in 1999, Yeltsin listened to Abramovich's recommendation & appointed Putin as the new Russian President.
This would serve Abramovich well in the coming years.
6) The multi-decade relationship between Roman Abramovich & Vladimir Putin has been well documented.
Abramovich has supported Putin politically — he attended Putin's birthday parties & helped Russia land the 2018 World Cup.
He even allegedly GIFTED Putin a $50 million yacht.
Abramovich has supported Putin politically — he attended Putin's birthday parties & helped Russia land the 2018 World Cup.
He even allegedly GIFTED Putin a $50 million yacht.
7) This relationship with Vladimir Putin enabled Roman Abramovich to expand his business empire.
He made over $12 billion on the Sibneft oil deal while receiving tax breaks & favorable government contracts.
But he also founded Rusal, the world's 2nd-largest aluminum company.
He made over $12 billion on the Sibneft oil deal while receiving tax breaks & favorable government contracts.
But he also founded Rusal, the world's 2nd-largest aluminum company.
8) And with this wealth, Roman Abramovich has acquired assets throughout the Western world.
He owns $500 million of luxury real estate in London, New York, St. Barts, and Aspen.
And he has nearly $2 billion in superyachts & planes.
But no purchase was more public than Chelsea.
He owns $500 million of luxury real estate in London, New York, St. Barts, and Aspen.
And he has nearly $2 billion in superyachts & planes.
But no purchase was more public than Chelsea.
9) Roman Abramovich purchased Chelsea in 2003 for nearly $200 million.
He then pumped $2 billion of his own money into the club and turned them into a powerhouse overnight.
Before Abramovich, Chelsea hadn't won a league title in 48 years, but since 2003, they've won five.
He then pumped $2 billion of his own money into the club and turned them into a powerhouse overnight.
Before Abramovich, Chelsea hadn't won a league title in 48 years, but since 2003, they've won five.
10) But with Russia invading Ukraine, Roman Abramovich's relationship with Vladimir Putin is being examined & his assets have been frozen by the UK.
He can't travel to the UK, and no one there can do business with him.
He has also been disqualified as the director of Chelsea.
He can't travel to the UK, and no one there can do business with him.
He has also been disqualified as the director of Chelsea.
11) So what does this mean for Chelsea?
The $3 billion team sale has been delayed, but the UK is allowing them to continue playing games.
Only season ticket holders can attend, the merchandise store has been closed & their bank account was even frozen by Barclays.
It's a mess.
The $3 billion team sale has been delayed, but the UK is allowing them to continue playing games.
Only season ticket holders can attend, the merchandise store has been closed & their bank account was even frozen by Barclays.
It's a mess.
12) The sports world has never seen a situation like this before.
The complexities are obvious, and the moral debates are pervasive.
Teams and leagues will have to make hard decisions, and it will be impossible to make everyone happy.
The complexities are obvious, and the moral debates are pervasive.
Teams and leagues will have to make hard decisions, and it will be impossible to make everyone happy.
13) But while the sports world is focused on Roman Abramovich, Chelsea & the implications of sanctions, we can't forget that millions of innocent lives are being negatively impacted by the violent conflict in Ukraine.
War has no winners, and some things are bigger than sports
War has no winners, and some things are bigger than sports
14) If you enjoyed this thread, you should:
1. Follow me; I tweet cool stories like this every day.
2. Subscribe to my free daily newsletter, where I give a detailed analysis on topics involving the money and business behind sports. https://huddleup.substack.com/
1. Follow me; I tweet cool stories like this every day.
2. Subscribe to my free daily newsletter, where I give a detailed analysis on topics involving the money and business behind sports. https://huddleup.substack.com/
One clarification — Roman Abramovich & Boris Berezovsky didn’t pay $200 million out of pocket for Sibneft oil.
Boris was friends with President Yeltsin, and they secured a loan to purchase the company through the loans for shares scheme.
Boris was friends with President Yeltsin, and they secured a loan to purchase the company through the loans for shares scheme.
