Chelsea Football Club today (Monday) made a proposal to buy back the freehold land on which the football stadium at Stamford Bridge sits. The freehold is currently owned by a company called Chelsea Pitch Owners Plc (CPO) which was set up in 1993 after the future of Stamford Bridge as a football stadium had come under a very real threat. This was seen off after a long and financially draining fight.
The idea behind CPO was to put the ownership of the site freehold into many friendly hands to protect it from property developers. Roman Abramovich's ownership and long-term commitment to the club removes the once real danger that the team could find itself homeless or at a substandard ground, therefore we believe the CPO safeguard is no longer necessary.
Chelsea FC will, in return for the freehold, effectively write off the remainder of a £10 million loan given to CPO 14 years ago to assist CPO's purchase of the freehold. Stamford Bridge hosted our first home game in September 1905 and has been our only ground since. But the success and rising popularity since Abramovich bought the club in 2003, plus changes to regulations that impact on how football is financed and the limitations of the current stadium site, mean that while there are no plans to move and no discussions over any potential sites, buying back the freehold removes a potential hurdle should a suitable site become available in the future.
It has always been the desire of the club's owner and directors that Chelsea should remain at Stamford Bridge as long as the stadium meets our needs. Many potential ways for increasing capacity have been studied. The investigations continue but adjacent railway lines, buildings and limited exits are major obstacles and mean that matchday income is limited by a ground capacity that is smaller than many of our rivals. The proposed transaction would also make it possible for CPO to offer to buy back shares from shareholders if it so wishes.
The club will enter into a legal commitment to CPO that no relocation will take place before 2020 unless it is within a three-mile radius of our current home. That commitment will also set a new stadium capacity at a minimum of 55,000, and at least 10 per cent of those seats will be made available exclusively to families and supporters under 21 years of age. Recognising what an important part in our history CPO has played, its shareholders who vote in favour of the transaction will be named in a walk or roll of honour at a new stadium should we move. They would also enjoy priority rights to purchase season tickets at any new stadium.
After its 1993 launch CPO raised funds, by the sale of shares, with a view to acquiring the freehold and putting it out of the grasp of developers, but was considerably short of the amount needed when in 1997 the club was able to lend CPO the approximately £10 million needed. CPO then granted us a 199-year lease for the stadium site at a peppercorn rent. To date, CPO has sold approximately 15,000 shares, raising approximately £1.5 million. It was never intended to make profit or pay dividends. A General Meeting of CPO will be held on 27 October with shareholders requested to vote in favour of the proposal either at the meeting or by a proxy form that will be sent to them.
Bruce Buck, chairman of Chelsea FC says: 'Chelsea should always be grateful to those who invested in CPO. We know only too well how close the club came to losing our home prior to the formation of CPO, but that threat has now gone under Mr Abramovich's ownership and with the CPO structure in place we cannot plan with certainty for the future. I hope all shareholders vote in favour of the proposal.' Chief Executive Ron Gourlay adds: 'I am sure all Chelsea fans have enjoyed the football and success we have witnessed at Stamford Bridge since 2003 and Chelsea Football Club and Mr Abramovich are determined to ensure that the club continues to compete at the highest level of world football. 'We continue to look at options for expanding the Bridge and I should be clear that we have not identified a site for a new stadium elsewhere.'
CHELSEA FC PROPOSAL TO CHELSEA PITCH OWNERS | Latest Chelsea News | Team & Transfer News | Chelsea FC | Chelsea
In a nutshell
Now now, what do we make of this. This is good and bad. The good thing is it means there may be a redevelopment of Stamford Bridge or a new stadium move alltogether. But on a bad note this is the last part of the club the supporters actually own so it is something special and Mr Abramovich will own all of Chelsea FC.
The idea behind CPO was to put the ownership of the site freehold into many friendly hands to protect it from property developers. Roman Abramovich's ownership and long-term commitment to the club removes the once real danger that the team could find itself homeless or at a substandard ground, therefore we believe the CPO safeguard is no longer necessary.
Chelsea FC will, in return for the freehold, effectively write off the remainder of a £10 million loan given to CPO 14 years ago to assist CPO's purchase of the freehold. Stamford Bridge hosted our first home game in September 1905 and has been our only ground since. But the success and rising popularity since Abramovich bought the club in 2003, plus changes to regulations that impact on how football is financed and the limitations of the current stadium site, mean that while there are no plans to move and no discussions over any potential sites, buying back the freehold removes a potential hurdle should a suitable site become available in the future.
It has always been the desire of the club's owner and directors that Chelsea should remain at Stamford Bridge as long as the stadium meets our needs. Many potential ways for increasing capacity have been studied. The investigations continue but adjacent railway lines, buildings and limited exits are major obstacles and mean that matchday income is limited by a ground capacity that is smaller than many of our rivals. The proposed transaction would also make it possible for CPO to offer to buy back shares from shareholders if it so wishes.
The club will enter into a legal commitment to CPO that no relocation will take place before 2020 unless it is within a three-mile radius of our current home. That commitment will also set a new stadium capacity at a minimum of 55,000, and at least 10 per cent of those seats will be made available exclusively to families and supporters under 21 years of age. Recognising what an important part in our history CPO has played, its shareholders who vote in favour of the transaction will be named in a walk or roll of honour at a new stadium should we move. They would also enjoy priority rights to purchase season tickets at any new stadium.
After its 1993 launch CPO raised funds, by the sale of shares, with a view to acquiring the freehold and putting it out of the grasp of developers, but was considerably short of the amount needed when in 1997 the club was able to lend CPO the approximately £10 million needed. CPO then granted us a 199-year lease for the stadium site at a peppercorn rent. To date, CPO has sold approximately 15,000 shares, raising approximately £1.5 million. It was never intended to make profit or pay dividends. A General Meeting of CPO will be held on 27 October with shareholders requested to vote in favour of the proposal either at the meeting or by a proxy form that will be sent to them.
Bruce Buck, chairman of Chelsea FC says: 'Chelsea should always be grateful to those who invested in CPO. We know only too well how close the club came to losing our home prior to the formation of CPO, but that threat has now gone under Mr Abramovich's ownership and with the CPO structure in place we cannot plan with certainty for the future. I hope all shareholders vote in favour of the proposal.' Chief Executive Ron Gourlay adds: 'I am sure all Chelsea fans have enjoyed the football and success we have witnessed at Stamford Bridge since 2003 and Chelsea Football Club and Mr Abramovich are determined to ensure that the club continues to compete at the highest level of world football. 'We continue to look at options for expanding the Bridge and I should be clear that we have not identified a site for a new stadium elsewhere.'
CHELSEA FC PROPOSAL TO CHELSEA PITCH OWNERS | Latest Chelsea News | Team & Transfer News | Chelsea FC | Chelsea
In a nutshell
Now now, what do we make of this. This is good and bad. The good thing is it means there may be a redevelopment of Stamford Bridge or a new stadium move alltogether. But on a bad note this is the last part of the club the supporters actually own so it is something special and Mr Abramovich will own all of Chelsea FC.
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