Kimbo Posted October 10, 2008 Share Posted October 10, 2008 http://www.thisislondon.co.uk/standard/article-23571214-details/Roman+loses+%C2%A312bn+on+bad+day+for+London%27s+club/article.do 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.” Holy shit! With Chelsea making a big loss every year this can't be good(for them). Link to post Share on other sites More sharing options...
johnnypd Posted October 10, 2008 Share Posted October 10, 2008 commodities like oil or gas have fallen sharply recently so it is no wonder those kinds of firms are suffering the most. but as finite resources facing rising demand, and with their production limit controlled, they'll go back to rising in price soon enough and the value of their shares will rise again. i wouldnt be suprised to see these oligarchs buy in bulk now that shares are cheaper, ending up richer in the long run. a bit different to the west ham bloke's situation. it would be more like if abramovich had drilled for gas in dodgy areas, took a load of money on in anticipation of finding vast untapped reserves, and then found out there's fuck all there. Link to post Share on other sites More sharing options...
Kimbo Posted October 10, 2008 Share Posted October 10, 2008 commodities like oil or gas have fallen sharply recently so it is no wonder those kinds of firms are suffering the most. but as finite resources facing rising demand, and with their production limit controlled, they'll go back to rising in price soon enough and the value of their shares will rise again. i wouldnt be suprised to see these oligarchs buy in bulk now that shares are cheaper, ending up richer in the long run. What sort of timescale are you thinking? This crisis will probably get worse before it gets better, it could last several years, more than enough time for Chelsea to implode. Link to post Share on other sites More sharing options...
madras Posted October 10, 2008 Share Posted October 10, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion Link to post Share on other sites More sharing options...
johnnypd Posted October 10, 2008 Share Posted October 10, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. Link to post Share on other sites More sharing options...
ChezGiven Posted October 10, 2008 Share Posted October 10, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. As long as people can afford current sky/cable prices/going to bars and watch advertising for products they then purchase, it will all be fine. Link to post Share on other sites More sharing options...
madras Posted October 10, 2008 Share Posted October 10, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. As long as people can afford current sky/cable prices/going to bars and watch advertising for products they then purchase, it will all be fine. sky without football is fucked----football without sky is fucked----mutual dependency Link to post Share on other sites More sharing options...
James Posted October 10, 2008 Share Posted October 10, 2008 It was in chat a week or so ago, Ashley has lost £900m and is no longer a billionaire. It is the same for everyone at the moment, so no real loss at the top. I still feel that one or two other clubs may yet break, and I have a funny feeling it might be Liverpool. Link to post Share on other sites More sharing options...
Anthnufc Posted October 11, 2008 Share Posted October 11, 2008 Gutted for him Wonder how he will survive? Link to post Share on other sites More sharing options...
merlin Posted October 11, 2008 Share Posted October 11, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. As long as people can afford current sky/cable prices/going to bars and watch advertising for products they then purchase, it will all be fine. That's the whole point, though - as unemployment rises(which it will, and in a big way ; I know of firms in the UK who are laying off thousands of workers),one of the things which will have to be sacrificed is Sky TV. Energy costs(heating, electricity) are also going to rise steadily... I don't think many people have realised just how serious this recession is going to be. As I said before, there will be HUGE repercussions for Prem clubs. Link to post Share on other sites More sharing options...
ewerk Posted October 11, 2008 Share Posted October 11, 2008 What a pack of shite. Link to post Share on other sites More sharing options...
Guest nufc_geordie Posted October 11, 2008 Share Posted October 11, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. As long as people can afford current sky/cable prices/going to bars and watch advertising for products they then purchase, it will all be fine. That's the whole point, though - as unemployment rises(which it will, and in a big way ; I know of firms in the UK who are laying off thousands of workers),one of the things which will have to be sacrificed is Sky TV. Energy costs(heating, electricity) are also going to rise steadily... I don't think many people have realised just how serious this recession is going to be. As I said before, there will be HUGE repercussions for Prem clubs. I agree there will be huge repurcussions for premiership clubs but your recession facts aren't quite right. The only good thing to come for us is that energy and food prices should come down.....everyhting else will get more expensive. That is why Abramovich et al are losing money. The cost of a barrel of oil is falling massively. This will pass on to customers eventually bringing down the cost of food and petrol. As long as there is a global recession the confidence in the commodities markets will be low. Link to post Share on other sites More sharing options...
PRL Posted October 11, 2008 Share Posted October 11, 2008 Despite what has happened over the last few months we are still going to move into a commodity boom once the global situation is sorted, oil and energy will be up again in the medium term Link to post Share on other sites More sharing options...
merlin Posted October 11, 2008 Share Posted October 11, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. As long as people can afford current sky/cable prices/going to bars and watch advertising for products they then purchase, it will all be fine. That's the whole point, though - as unemployment rises(which it will, and in a big way ; I know of firms in the UK who are laying off thousands of workers),one of the things which will have to be sacrificed is Sky TV. Energy costs(heating, electricity) are also going to rise steadily... I don't think many people have realised just how serious this recession is going to be. As I said before, there will be HUGE repercussions for Prem clubs. I agree there will be huge repercussions for premiership clubs but your recession facts aren't quite right. The only good thing to come for us is that energy and food prices should come down.....everyhting else will get more expensive. That is why Abramovich et al are losing money. The cost of a barrel of oil is falling massively. This will pass on to customers eventually bringing down the cost of food and petrol. As long as there is a global recession the confidence in the commodities markets will be low. Are you not aware of how serious the Electricity generation situation in the UK is? In a minimum of 6 years, 40% of the current generating capacity is due to be shut down, either because of EU rules on emissions(Coal-fired Power stations like Drax)or because the old Nuclear stations are worn out(the one at Hartlepool is indeed out of action NOW because of corrosion which is making it dangerous). The UK Govt sold off Westinghouse to Toshiba of Japan in 2006, yet they were the ONLY UK manufacturer of Nuclear Power stations...and just a few weeks ago, the UK Govt begged and pleaded for EDF(the French Nuclear Plant builders and energy company)to buy up British Energy...how stupid is that ? Toshiba now have 19 orders for new power stations....... It will take EDF 9 YEARS to get cracking on building new Nuclear Power stations...in the meantime, the UK is dependent upon Russian Gas supplies BUT - the former Energy Minister admitted that it was 'highly likely' that there would be Power cuts this winter in the UK if a cold snap occurred..also, the lack of storage for Gas means that UK has to buy it at excessive prices from the Continent in winter... Upshot of all this is higher bills - regardless of Oil prices, and DON'T expect those to stay where they are now - will be close to $100 p.barrel again as soon as US winter heating season starts. I am NOT wrong about Recession - wait and see ; I KNOW that a famous firm in the Building trade HAS laid off 2000 over the past few weeks.People are in denial of what has happened over the past few months - there has been a MASSIVE failure of the world's Financial system and the likes of this has not happened since 1929...confidence has been lost in the whole system(as has many people's savings/Pensions), and the UK no longer has the manufacturing capacity to recover as it did in 1929...to a lesser extent, this also applies to the USA and the World has seen through both countries after their attempts to build an economy on Debt and rising house prices, which failed as soon as wages failed to keep pace with house prices. That is why this stockmarket sell-off has been so severe...there is NO confidence. Link to post Share on other sites More sharing options...
Dinho lad Posted October 11, 2008 Share Posted October 11, 2008 so how much does he own now then? Link to post Share on other sites More sharing options...
OzzieMandias Posted October 11, 2008 Share Posted October 11, 2008 I can't see this thread title without thinking of a legionnaire dropping a particularly fat wallet. Link to post Share on other sites More sharing options...
Rob W Posted October 13, 2008 Share Posted October 13, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. As long as people can afford current sky/cable prices/going to bars and watch advertising for products they then purchase, it will all be fine. That's the whole point, though - as unemployment rises(which it will, and in a big way ; I know of firms in the UK who are laying off thousands of workers),one of the things which will have to be sacrificed is Sky TV. Energy costs(heating, electricity) are also going to rise steadily... I don't think many people have realised just how serious this recession is going to be. As I said before, there will be HUGE repercussions for Prem clubs. I agree there will be huge repercussions for premiership clubs but your recession facts aren't quite right. The only good thing to come for us is that energy and food prices should come down.....everyhting else will get more expensive. That is why Abramovich et al are losing money. The cost of a barrel of oil is falling massively. This will pass on to customers eventually bringing down the cost of food and petrol. As long as there is a global recession the confidence in the commodities markets will be low. Are you not aware of how serious the Electricity generation situation in the UK is? In a minimum of 6 years, 40% of the current generating capacity is due to be shut down, either because of EU rules on emissions(Coal-fired Power stations like Drax)or because the old Nuclear stations are worn out(the one at Hartlepool is indeed out of action NOW because of corrosion which is making it dangerous). The UK Govt sold off Westinghouse to Toshiba of Japan in 2006, yet they were the ONLY UK manufacturer of Nuclear Power stations...and just a few weeks ago, the UK Govt begged and pleaded for EDF(the French Nuclear Plant builders and energy company)to buy up British Energy...how stupid is that ? Toshiba now have 19 orders for new power stations....... It will take EDF 9 YEARS to get cracking on building new Nuclear Power stations...in the meantime, the UK is dependent upon Russian Gas supplies BUT - the former Energy Minister admitted that it was 'highly likely' that there would be Power cuts this winter in the UK if a cold snap occurred..also, the lack of storage for Gas means that UK has to buy it at excessive prices from the Continent in winter... Upshot of all this is higher bills - regardless of Oil prices, and DON'T expect those to stay where they are now - will be close to $100 p.barrel again as soon as US winter heating season starts. I am NOT wrong about Recession - wait and see ; I KNOW that a famous firm in the Building trade HAS laid off 2000 over the past few weeks.People are in denial of what has happened over the past few months - there has been a MASSIVE failure of the world's Financial system and the likes of this has not happened since 1929...confidence has been lost in the whole system(as has many people's savings/Pensions), and the UK no longer has the manufacturing capacity to recover as it did in 1929...to a lesser extent, this also applies to the USA and the World has seen through both countries after their attempts to build an economy on Debt and rising house prices, which failed as soon as wages failed to keep pace with house prices. That is why this stockmarket sell-off has been so severe...there is NO confidence. Westinghouse UK was a subsid of Westinghouse US - they produced a workable reactor but the Brits went on for years building AGR types which never really worked economically before they turned to the US model You could have a set of new reactors in less than 5 years IF the Govt suspended the planning rules We don't run out of electricity - we just build new gas powered stations - very easy and quick to do - the PRICE of electricity based on imported gas (from our friends at GAZPROM) is, as you point out, another matter.................... The Govt has just spun the energy guys out of DTI/BERR into DECC - better than ANT I suppose Link to post Share on other sites More sharing options...
Teasy Posted October 13, 2008 Share Posted October 13, 2008 but on that sort of scale doesn't it mean that beacuse of the present financial climate kaka will probably move for £20mill instead of £44 gazilliontrillion ironically the premiership is experiencing a huge boom due to the TV money so it will take a couple of years, when tv rights are renegotiated, to see if this has any effect. crowds might fall a bit but this is less important than ever. That safeguards most clubs since most of them spend based on revenue, however for the likes of Chelsea its more important that there owner is ok financially then whether Sky keep paying the same for TV rights. Unfortunately for us Abramovich can still afford to keep Chelsea afloat despite losing nearly 90% of his wealth! Though hopefully it will force Chelsea to live somewhere closer to there means for a while. Link to post Share on other sites More sharing options...
Teasy Posted October 13, 2008 Share Posted October 13, 2008 Looking at the stats Abramovich was worth £13.6 billion in March of this year. Now he's worth £1.6 billion! He must be crying into his cornflakes As people have said though, his is the kind of wealth that will come back eventually, only question is when. Link to post Share on other sites More sharing options...
LooneyToonArmy Posted October 14, 2008 Share Posted October 14, 2008 Obviously, there is a great difference between his personal fortune and the value of his companies. Two completely different things. With his type of wealth.. he could ride the crisis... I dont believe he places everything in one basket. ------------- Roman Abramovich's spokesman has played down suggestions that the Chelsea owner has fallen victim to the global economic downturn. Stock markets around the world have taken a pounding this week, while commodities and property have also slipped markedly in value and it has been suggested that Abramovich has taken a £12 billion hit. The Russian has bankrolled Chelsea since taking the helm in 2003 and it would appear it is business as usual, as talk of a £12 billion loss is ‘misleading’. A spokesman for Abramovich has insisted his considerable cash and property assets remain unaffected, while exposure to the stock market has been put down as a ‘paper loss’. ”The figure is just arbitrary as those you see in Forbes every year and we don’t put any stock to them,” Abramovich’s spokesman John Mann told The Telegraph. Link to post Share on other sites More sharing options...
Rob W Posted October 14, 2008 Share Posted October 14, 2008 well he owns about 700 acres of the most expensive real estate on the planet - move Chelski out of town and he's sitting on a fortune just there Link to post Share on other sites More sharing options...
Guest Howaythetoon Posted October 14, 2008 Share Posted October 14, 2008 Is this just paper loss or real loss? Link to post Share on other sites More sharing options...
sparta Posted October 14, 2008 Share Posted October 14, 2008 http://op-for.com/simpsons_nelson_haha2.jpg Link to post Share on other sites More sharing options...
juniatmoko Posted October 14, 2008 Share Posted October 14, 2008 i think that loss just a prediction as you know some stock has irrational value... he still as rich as before... real assets is not like stock which are virtual assets based on computer estimated value... and this is the problem on economic global at the moment Link to post Share on other sites More sharing options...
Optimistic Nut Posted October 14, 2008 Share Posted October 14, 2008 I totally concur. Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now