Roman Abramovich, the former owner of Chelsea FC, could owe the UK government as much as £1bn in unpaid taxes, according to leaked documents. The £4.7 billion funds reportedly financed Chelsea FC from 2004, when Abramovich, through associate Eugene Shvidler, managed investments via British Virgin Islands companies.
These also helped finance Chelsea’s significant spending on transfers and wages. Abramovich initially bought the Premier League club from Ken Bates in 2003 for a reported £140m. First reported by the BBC, the Bureau of Investigative Journalism (TBIJ) found that funds linked to the scheme were managed from the UK, making them subject to UK taxation.
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This tax avoidance may be worth an estimated £1bn when penalties and interest are factored in. Shvidler, who lived in the UK, was responsible for the day-to-day management of these investments, according to the leaked documents and a US Securities and Exchange Commission (SEC) filing.
The tax-related controversy emerged after Abramovich was forced to sell Chelsea in 2022 due to sanctions imposed on Russia following its invasion of Ukraine.
The sale of the club to Todd Boehly and Behdad Eghbali has led to significant changes in players, coaches, and board members during a challenging period for the organisation. Labour MP Joe Powell has called for an investigation by HM Revenue and Customs (HMRC), urging the government to recover significant amounts for public services.
Tax experts suggest that Abramovich’s profits, estimated at £3.1bn, should have been subject to UK corporate tax. Funds from Abramovich’s untaxed profits were reportedly funneled through his network of BVI companies to finance Chelsea FC’s operations. Meanwhile, £2.5bn from the club’s sale remains frozen due to ongoing disputes over its allocation.
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