Chelsea’s Bank Account Temporarily Suspended

Chelsea’s bank account with Barclays has reportedly been suspended after owner Roman Abramovich was sanctioned.

Sky Sports claim the bank has taken the action because it needs time to evaluate the license handed to the club by the UK government to continue football-related activities in the wake of the Russian billionaire being sanctioned.

The report claims the Blues remain hopeful Barclays will soon lift the suspension of their account.

Barclays are understood to be assessing how comfortable they are taking the risk of carrying on providing banking services to Chelsea, given banks’ reluctance generally to do business with those figures on the government’s sanctions list.

The west London club are currently operating under a government-approved special licence, allowing them to function – however restrictively – when it comes to football matters.

It was implemented after Abramovich had his assets frozen, as well as seeing ‘a prohibition on transactions with UK individuals and businesses, a travel ban and transport sanctions’ imposed on him due to his perceived links to Vladimir Putin.

The licence also currently prohibits Chelsea from seeking a sale of their club, but the government have indicated they would be prepared to alter the terms to permit one if they receive an application.

Chelsea are continuing to negotiate with the government over securing exemptions from a number of the restrictions placed on them on Thursday, particularly with regard to ticket sales and match-day operations and travel costs, but have yet to achieve significant breakthroughs.

Under a wide-ranging raft of restrictions, Chelsea were left unable to sell match tickets, forced to close the club shop and blocked from taking bookings for the Stamford Bridge hotel.

They were told they can no longer buy or sell players, or offer new contracts, and were restricted to a maximum spend of £20,000 on travel to away matches.

They were informed that they can only pay ‘reasonable costs’ towards hosting home fixtures, ‘not exceeding £500,000 per fixture, per team’.

But there is a view the limits on transport and hosting matches will need to be raised to stop the club losing money.

Chelsea will continue to receive TV broadcast payments and prize money, but this will be frozen. Existing staff and players will continue to be paid.