The sale of Chelsea Football Club could come down to an auction among interested parties, who will be asked submit sealed bids, according to a leading sports lawyer.
A deadline of Friday has been set for potential buyers to formally lodge their interest with New York Merchant Bank, the Raine Group
However, with Chelsea operating under a special licence after owner Roman Abramovich was sanctioned by the UK government last week, the sale is beset by complications and uncertainties, say lawyers.
The Government claims the Russian oligarch, who has owned Chelsea since 2003, received financial benefits from the Kremlin – including tax breaks for his companies, the buying and selling of shares from and to the state at favourable rates and contracts in the run up to the 2018 World Cup in Russia, it was claimed.
An expectation now is that bidders will have to follow a process similar to a purse bid in boxing.
Potential buyers would be asked to meet qualification criteria, which could include a minimum price, commitments to completing the process by a certain date or even more detailed conditions, like agreeing to a fan representative being involved in running the club under the new owners.
If the qualification criteria were met by more than one bidder, then the buyer can be initially selected on the basis of who has offered the most money.
Roman Abramovich has been disqualified as a director of Chelsea by the Premier League
‘It appears to be proceeding as a ‘purse bid’ process similar to that for a world title boxing event. With a deadline of 18th March for bids,’ said Stephen Taylor Heath, Head of Sports Law at JMW Solicitors.
‘In such a scenario the banking entity handling the sale, the Raine group, would literally hold an auction style process and announce the winning bidder.
‘The bidders may have to place a deposit to show a genuine interest and access to funds. The bidders may be allowed to undertake an element of due diligence prior to making the bids on the…
Source : dailymail
