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Chelsea owner Roman Abramovich's fortune still intact
Advisers play down suggestions that the Roman Abramovich's personal wealth had been badly affected by the stock market crash.
Not funny: advisers have denied Roman Abramovich may have lost £12 billion
It was reported that Abramovich had lost as much as £12 billion following the decline in value of steel-making company Evraz and mining company Highland Gold.
However, this estimate was dismissed as misleading and grossly exaggerated by associates of the Russian billionaire. Abramovich's considerable cash and property assets are thought to have been unaffected, while any stock market impact would amount to 'paper losses'. It is also understood that Abramovich has no intention of selling any of his stock.
"The figure is just as arbitrary as those you see in Forbes every year and we don't put any stock by them," Abramovich's spokesman, John Mann, said. However, Chelsea are looking to become less financially reliant on Abramovich and hope to break even by 2010.
Chelsea have opened negotiations with Lyn Oslo, of Norway, over a potential out-of-court settlement after the London club issued a £16 million High Court claim over the transfer of John-Obi Mikel.
Chelsea paid £12 million to Manchester United and £4 million to Lyn for Mikel in 2006. Since then Lyn's former chief executive, Morgan Andersen, has been convicted of fraud and making false accusations.
"The claim is against FC Lyn Oslo and Morgan Andersen," a Chelsea statement said. "It is now clear following Andersen's conviction that the transfer was based on the fraudulent misrepresentation that Mikel had an employment contract with Lyn."
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Roman now got no oil money liao... He sold that back to the Russian gov already... Now most of his money are in the steel industry... Not so easy to have big and easy profits like before...
He seems like he could get into money problems... When I say money problems, I mean his total fortune could drop quite a lot... Unwise spending and his lifestyle, private plane, huge private yacht... all this need to be maintain and the people he need to keep in employment to manage this luxury items...
I think we will start to see Chelsea throwing lesser and lesser money to buy new players liao... since they hope to break even by 2010.
Edited by zocoss 11 Oct `08, 2:19PM
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Originally posted by zocoss:
Roman now got no oil money liao... He sold that back to the Russian gov already... Now most of his money are in the steel industry... Not so easy to have big and easy profits like before...
He seems like he could get into money problems... When I say money problems, I mean his total fortune could drop quite a lot... Unwise spending and his lifestyle, private plane, huge private yacht... all this need to be maintain and the people he need to keep in employment to manage this luxury items...
I think we will start to see Chelsea throwing lesser and lesser money to buy new players liao... since they hope to break even by 2010.
ai ya.. in our eyes he is rich like fuck.. 1 billion enough to last at least 5 generation la!
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Originally posted by youyayu:
ai ya.. in our eyes he is rich like fuck.. 1 billion enough to last at least 5 generation la!
Well true lah but for someone who had $18b not too long ago only suddenly see his money gets lesser by the day will still be concern one... Like they say... How much you have is still not enough... Less than 20 yrs ago only he was a very poor man, couldn't even afford to eat... He depended on his air stewardress wife for money...And now that he is rich, I don't think he would ever want to go back to that lifestyle again... And don't forget, he still has a divorced wife who supported him through the years he was poor and 4 to 5 kids to support as well...
In the past, money was easy to earn... No need to do anything, the oil keep coming out and he gets richer... Now no more oil company for easy profits liao so have to depend on more riskier means... that can actually see him lose more money... And people like him, so use to the spending, the 1 billion may not even last him 1 generation let alone 5...
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Roman loses £12bn on bad day for London's club
Abramovich lost £12 billion on the Russian stock exchange
Roman Abramovich has lost £12 billion on the Russian stock exchange, it was revealed today. The owner of Chelsea FC has seen his fortune dwindle as Russia's Micex Index has gone into freefall.
The decline in value of two of his companies on the Moscow-based index, steel maker Evraz and mining company Highland Gold, has left the 41 year-old tycoon $20.3 billion (£11.9 billion) out of pocket.
The staggering loss was revealed today by analysts who said it represented a decline in the equity value of traded companies. Abramovich's woes come on a disastrous financial day for London's Premiership football clubs with the owners of Arsenal and West Ham also suffering.
<!-- ARTICLE INLINE AD -->Arsenal FC's part owner Alisher Usmanov has lost £7 billion ($11.7 billion) on the Micex index which has declined 61 percent since its peak in May and was closed today for the second time this week.
The metals and mining mogul and Abramovich are part of a list of 25 Russian oligarch's who have lost £140 billion ($238 billion) on the Micex index.
The country's ailing economy has also been hit by war with Georgia and foreign capitalists withdrawing billions of pounds worth of investment from a nation facing a period of instability.
West Ham were plunged further into crisis as it was revealed that the east London club's Icelandic owner Bjorgolfur Gudmundsson is considering selling the club after losing £230 million in the country's own economic crash.
Abramovich's unprecedented loss will set alarm bells ringing in the football world and the City. It comes after Chelsea chairman, Bruce Buck suggested this week that the club could sell players to survive the financial turmoil.
He said: “Even with a benefactor like Roman Abramovich, if we think revenues are going to go down a bit we have to look at our expense side to look for areas where it is appropriate for us to save money. That's actually a process we are engaged with at the moment.”
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Originally posted by dragg:
just like he said, "its just paper loss." this is the case for all holding stocks in the market.
Err... sometimes, its not so simple as "just paper loss"... It can take years or decades for that stock to rise to an acceptable level again... While your stock is in depreciation, you may have no working capital.The country's ailing economy and foreign capitalists withdrawing billions of pounds worth of investment won't help and it could bring more prolong instability to that nation.
If you dont have the cash you have to use other assets which generally means you have to sell stock regardless of the price to pay your bills... so it is far more complicated than to say "just paper loss"
And unlike with oil companies, mining stocks are far more difficult to recover compare to oil which is of greater demand... No one is safe.... Millionaires can wake up broke, Billionaires too with the size of this current worldwide meltdown... And in the process, new millionaires and billionaires could be created...
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Originally posted by redDUST:
i hope he will go on to build his yacth that can detect missiles though. it is way cool. i wonder if he detects one on its way, does he have a retaliation plan or just 'nice to know'.
Hahaha... Work on that yacht has already been started quite sometime back, way before all this financial problems started... I think he plan to live on the yacht in the future... Was rather surprised when i first read it has a built in missile detection system, armour plating, 2 helicopter pads and a submarine tho...... I mean, does he really need the missile detection system? He is seriously expecting someone to kill him with a missile?The only likely possibility are from the Russian gov. But if they really want him dead, you think a missile detection system is going to stop them? They can just send a fighter jet and blow him out of the water in close range. Or better still, use a torpedo from one of their hidden submarines around the world... That will be enough to finish him off... Another waste of money investment i guess... this would see his fortune dwindle even more...
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No wonder Chelsea seemed to be going around fighting for every cent now... They were not like this a few years back leh... I remember they still let Veron and Crespo all go out for "loan" without even a transfer fee... And let them run out their contracts with the club. The very least, they could have still asked for a small fee lah... But I guess it was small changed to them then... But now seems like every cent counts.
Maybe Roman has warn Kenyon no more money from him, He wants them to be self sufficient from now on. But I belief a striker will still be coming in Jan lah, Those money that was suppose to pay for Robinho is still there...
And despite having the second highest revenue in the league, their overheads are far too high compare to the other big 3. Kenyon have to think of a way to keep it down in order to break even by 2010.
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