Chelsea Football Club

Lord Bassam of Brighton Excerpts

Thursday 31st March 2022 Lords Chamber

[Baroness Penn (Con)]

Of course, there is already a process in place for the Premier League to judge a fit and proper person. We cannot judge whether a different test would have prevented the sale of Chelsea to Roman Abramovich in the first place or would constrain a future sale in any way. The fan-led review is about future-proofing the system. That is why we are considering how to enhance the owners and directors test to ensure football has only suitable custodians and directors.

[Lord Bassam of Brighton (Lab)]

My Lords, it seems to be the case that the Government have effectively nationalised Chelsea Football Club—an interesting example of state intervention, I might add. The sale of Chelsea will obviously have to go ahead sooner rather than later if the club is to avoid running into cash-flow issues and facing the penalties associated with entering administration. The value of the club is such that it is likely to be purchased by a consortium of investors rather than any one individual such as Abramovich. What assessment has the department made of the likely timescales needed to complete due diligence and for the footballing authorities to carry out their fit and proper person tests for owners and directors? This could take some time, and I am concerned that the club will suffer as a consequence.

[Baroness Penn (Con)]

My Lords, I have heard reference to Chelsea as DCMS FC, but I should be clear that financial sanctions do not change the ownership of the frozen assets. The Government would like to see the club sold to an appropriate owner before the end of the season, but we do not want to prejudge that process; that is for Chelsea to undertake. I understand that the initial bidding round has now closed and the Government expect to hear soon regarding Chelsea’s preferred bids.