By Matthew
23 January, 2021 • 23:05GMT
“I was bored and wanted a new challenge”, Roman Abramovich told the BBC when he was asked on why he had bought Chelsea Football Club – never knew boredom could make someone buy a football club. Back in 2003, Chelsea was a struggling club owned by Ken Bates who would later go on to buy Leeds United. Chelsea was in debt and since on-pitch performances weren’t good enough to bring in much revenue, the club was struggling to meet up with its interest payments. Abramovich engrossed in buying a football club, probably to get out of boredom, Chelsea in need of a buyer who would pull it out of its potential bankruptcy, a match was about to be made in heaven.
Many clubs were offered to Abramovich; Portsmouth FC, the red side of Manchester and then the club he would eventually buy, Chelsea. According to sources, the deal was finalized in just 15 minutes. Why did he choose Chelsea? Why wouldn’t he? One, Chelsea is located in London, a great place to ply all kinds of trade, and then he probably wanted to showcase his Billionaire status since Chelsea desperately needed cash at that time. So, who is Roman Arkadyevich Abramovich?
Abramovich was born in Saratov, Russia in 1996 into a low class Jewish family who were originally from Lithuania and was raised by relatives since he was orphaned at the age of 4. He started work as a street trader and then worked as a mechanic at a local factory. In 1986, there was an economic and political restructuring of the Soviet Union, a reform called “perestroika”. Seeing this reform, he ventured into different businesses one including the sale of imported rubber ducks from his abode in Moscow. He later ventured into the trading of oil - the source of the resources he obtained to become an oil merchant remains obscure. At that time, Oil business was risky and not many went down that lane, but those that took the risk including Abramovich, were rewarded heavily. In 1993, he had made enough money to be considered as a business partner by many other rich Russian business men. Boris Berezovsky also known as Platon Elenin - most probably a pseudonym - a mathematician, former member of Russian Academy of Sciences and a wealthy man who had made his first fortune from selling locally produced cars, beckoned on Abramovich. He wanted him and Abramovich to bring many of Russia's oil companies under one organisation that they would own and control. Abramovich agreed and their business plan was a success.
As at this point the Soviet Union had collapsed and Russia had entered its post communist time, Boris Yeltsin was Russia's first post communist president. In 1996, Yeltsin kicked off his re-election election campaign but something was missing, he needed money. Realising this, he called on Russia's biggest oligarchs, a group Abramovich belonged to - oligarchs are very wealthy people who also have political powers and then run the country to an extent. He told them he would implement privatisation of state assets if they would assist him financially and influence the media to ensure he got re-elected. Yeltsin won the election and as promised, sold most of Russia's assets to the oligarchs at a fraction of their market value. It was reported that Berezovsky and Abramovich bought a particular state asset worth $3 Billion for just $100 million. The oligarchs became politically affluent and wealthy at a time Russia was suffering from economic depression. Before the end of his tenure, Yeltsin was ill and was forced out largely because he was despised by Russia's citizens.
Vladimir Putin was the man to become Russia's next president and had promised the public that he would smash the oligarchs and bring all their assets back under state control. Many of the oligarchs didn't see Putin as a threat and started to work out a political reform. Abramovich, not underestimating Putin, quickly became an ally of the man many of the oligarchs had despised. The aftermath of their despise? Their assets were seized and they were jailed on the charge of tax fraud. Abramovich retained all of his assets but had to abandon any plan of a political reform, something he never really wanted anyway. Also, Abramovich pumped cash into Putin's projects, built him a palace and bought him a 57m yatch worth £25 million, all of these Abramovich denied.
Berezovsky refused to be a friend of Putin and thus, his fallout with Abramovich. Berezovsky also said that Abramovich and Putin conspired against him and took away his fortune. The issue was addressed in court where Abramovich and Putin were vindicated and Berezovsky found to be a false witness. About a year later, Berezovsky was dead - believed to be suicide. The state later bought Abramovich's asset rather than seize it, for $13 Billion in 2005.
Abramovich a governor of a Russian province from 2003 to 2008 has been a key ally of Putin and his suffering from it presently as he is currently banned from entering the UK - a different story entirely - and unable to visit his club. From very humble beginnings to becoming a man who would eventually buy a football club out of boredom, Abramovich has probably been Russia's biggest oligarch.
