Abramovich Signs onto UEFA Financial Detente

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↵Roman Abramovich, the deliriously wealthy owner of Chelsea F.C., set the tone of the modern era of lavish spending in English soccer, transforming his club into a consistent powerhouse since assuming control in 2003. Now, in a change of course, he’s made Chelsea one of the first top clubs to support new rules that would force clubs to break even on football-related expenditures, thus preventing teams racking up large debts in order to out-spend other teams.↵↵Even though enforcement of those rules would not take effect until 2012 -- violators would be blocked from joining the Champions League -- Abramovich is trying to get out in front of the issue by eliminating Chelsea’s debt.↵

↵↵⇥He has converted £340 million ($541 million) in interest-free loans he made to the team into equity, leaving it “effectively debt-free”, the club announced Wednesday. ↵⇥↵⇥“The club’s debt load has been reduced almost to nil in order to provide more long-term stability for the club,” Chelsea Chairman Bruce Buck said in a statement on the club’s Web site. “The reduction will enable the club to comply with any regulations on debt levels which are being discussed by the football community.”↵⇥

↵↵↵It’s a big step for the initiative being pushed by UEFA president Michel Platini but by no means a complete turning of the corner. A recent study by football financial expert Jose Maria Gay de Liébena pegged the total debt of top European clubs at 4.36 billion euros. Belgian club Mouscron was forced from its championship on Monday after declaring bankruptcy. Even Premier League clubs aren’t safe -- Portsmouth could be forced into bankruptcy in February unless the club clears its debts with British officials.↵

↵↵Certainly Abramovich’s considerable wealth allows him to clear the debt that many of his own approaches are responsible for. Other clubs at the breaking point may not be as fortunate, but action being taken now will give at least some a chance at financial solvency in the future.↵

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