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Abramovich's cheque clears Chelsea debt
England - 24 December, 2007
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English Chelsea owner Roman Abramovich essentially moved his club ahead in the race for fiscal security, clearing Chelsea's GBP 36 million debt.
The debt was accrued when former chairman Ken Bates took out a Eurobond in 1997. The bond had a 9 percent annual interest charge. That added GBP 7 million a year to Chelsea's debt.
Abramovich paid off half the outstanding balance on the 10-year bond when he took control of the club four years ago. He could have repayed it in full, but opted not to do so because of repayment penalties.
Abramovich writes off his club's annual losses with interest-free loans. By 2006, he had loaned the club GBP 270 million. He spent GBP 440 million to take over the club.
The debt was accrued when former chairman Ken Bates took out a Eurobond in 1997. The bond had a 9 percent annual interest charge. That added GBP 7 million a year to Chelsea's debt.
Abramovich paid off half the outstanding balance on the 10-year bond when he took control of the club four years ago. He could have repayed it in full, but opted not to do so because of repayment penalties.
Abramovich writes off his club's annual losses with interest-free loans. By 2006, he had loaned the club GBP 270 million. He spent GBP 440 million to take over the club.
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