Chelski

2 July 2003

Chelsea is a trophy asset. Its location in London ensures it a group of wellheeled and wellconnected fans. Roman Abramovich will gain social cachet and connections from the purchase. Whether it stacks up as a business proposition is secondary.

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Russian businessman Roman Abramovich agreed to buy Britain's Chelsea football club for £60m.

The oil oligarch, Russia's secondrichest man, bought a 50.1 percent stake in Chelsea on Tuesday from shareholders including Chairman Ken Bates for 35p a share in cash. The bid, which values the whole company at nearly £60m, is open to all its investors.

Shares in the club, which counts Italian striker Gianfranco Zola among its players, rose above the offer price to as high as 43p in early trading on Wednesday. Bates led Chelsea through its most successful period since the early 1970s, before racking up debts of more than £70m as he struggled to challenge Manchester United and Arsenal in the Premier League. He will remain chairman. Chief executive Trevor Birch will also continue in his job.

Abramovich, who already owns a Russian ice hockey club, is a governor of Russia's Chukotka region. He is also a major shareholder in Sibneft, Russia's fifth largest oil company. Chelsea finished fourth in the premier league last season to qualify for the Champions' League after an absence of four years.

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