Sour Red grapes
Before we start this, I am a Manchester United fan. There, I’ve said it. My family is from Manchester (some of them via North Wales), I lived there until I was about four (although I was born in Essex for reasons too complicated to go into here), and I’ve supported United ever since I can remember - in our family, it was either United or City, and my Dad supported United, so the choice was sort of made for me.
But enough about me. This is about Chelsea. The papers are full of a growing cacophony of praise for Jose Mourinho and his works, for the team of apparent superbeings he has created, for the relentless Blue march towards what could be English football’s first “quadruple” - Premiership, FA Cup, League Cup and Champions League.
Mourinho is a talented man, clearly. Some of the players he has in his side are exceptional. Chelsea are long overdue a winning streak. But still this is all very, very wrong. Because the reason for all this success is the money of Roman Abramovich, and this money was earned immorally.
Last May, Guardian Weekend ran an investigation into Abramovich’s millions. It includes this:
The Sibneft minder shrugs his shoulders and Sterhov continues. “After Abramovich won the ‘loans for shares’ auction in 1995, we became Sibneft employees and the company stopped our wages for two, three, four months at a time.”
The Sibneft minder nods vigorously. “It’s true. That’s right,” he says. “Our wages were held back.” Sterhov continues: “Sibneft said it couldn’t afford to pay us. The country was heading for another financial crisis, and by August 1998, when the economy collapsed for the second time, people here were desperate. Then Sibneft started saying that although it couldn’t pay our wages, it would buy any shares left over from the privatisations of 1992.”
Company shops sprang up in Noyabrsk and Muravlenko, where the Sibneft shares were accepted instead of money. “Food, fridges, anything,” says Sterhov - a claim that would be repeated by many Sibneft employees we interviewed in Muravlenko and Noyabrsk. This was not the only way that Sibneft ended up with the bulk of the shares. An account of Sibneft’s complex financial manoeuvrings, produced by Russian analysts and seen by Weekend, confirms that in August 1997 Sibneft issued 45 million new shares in one of its most profitable subsidiary companies.
Core shareholders such as Abramovich and his partners were able to increase their stake in this subsidiary from 61% to 78% in this closed share issue. As a result, the shares belonging to workers who had bought into the subsidiary in 1992 were watered down and significantly dropped in value. The Sibneft workers launched a futile legal action while the £168m in extra revenue raised by the share issue was used by Sibneft to settle tax liabilities.
Christopher Granville, chief strategist of United Financial Group, a brokerage in London, told us, “Sibneft’s minority shareholders were completely ripped off. The new shares were a closed subscription offered only to core shareholders.” The Sibneft minder sitting beside us chips in. “My shares plummeted in value, along with everyone else’s, when the 1997 closed share issue was announced.”
Read the article. It will shock you. And then get really cross with Richard Williams in today’s Guardian when he says this:
The source of Abramovich’s money will also be examined again, accompanied by the suggestion that it is not right for the proceeds of Siberian oil wells to fund such deals.
Whatever distaste one might feel for the way he acquired his billions, in a free society his right to spend them as he wishes can hardly be questioned. But if there is any truth in the Cole allegation, this might be a good opportunity to remind him of the need to play by the rules.
No, Richard. In a free society, a guy who patently ripped off thousands of people would not be able to purchase a public platform in such a way that an entire sport is distorted. In a free society, football clubs run efficiently and professionally should not see their fortunes undercut by one inhuman oligarch with an open wallet and a broken razor. I seem to remember Robert Maxwell getting into all sorts of trouble when he owned Oxford United. Isn’t Abramovich the bigger menace to decent society? And why is no-one asking that question?