Afternoon:
10°c
Roman loses £12bn on bad day for London's club
Amar Singh10 Oct 2008
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.
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.”
Reader views (9)
HAHAHAHAHAHAHAHAHAHA!
Chelsea the biggest team in London? Yeah right!
BTW- I couldn't care less about Usmanov.
- Mitchgooner, London, 13/10/2008 13:50
Report abuse
HAHAHAHAHAHAHAHAHAHA!
Biggest team in London? Yeah right!
- Mitchgooner, London, 13/10/2008 13:41
Report abuse
I love it! Let's hope Chelsea collapse and all the smug and arrogant glory hunters who have jumped on the bandwaggon feel real pain. You live by the sword, you die by the sword! LMAO!
- Paul, Colchester, England, 13/10/2008 09:50
Report abuse
Shame!
- Tangomike, Kensington, London, 10/10/2008 17:09
Report abuse
We are all in the same boat,the only difference is Abromavich loses billions and we lose thousands.
Business is very hard for everybody, lets try and keep some sanity, otherwise the world will go bust.
- David Nigel Braham, Milan Italy, 10/10/2008 16:21
Report abuse
Eh I thought he was worth 7 billion, how can he lose 12 billion..?
- Shelly, London, 10/10/2008 16:01
Report abuse
Poor bloke doesn't have two billion to rub together...
- Ben, London, W1, 10/10/2008 15:07
Report abuse
What goes around, comes around.
- Charlie Cheshire, United Kingdom, 10/10/2008 15:03
Report abuse
Abramovich would only loss that money should he chooses to sell those shares. Secondly Bruce Buck did not once mention the selling of any players but talked about merchandise reductions, ticket reductions and so on.
- S, London, 10/10/2008 14:29
Report abuse
