Chelsea Football Club for £1

Buying a football club in 1982
Success in business is all about timing. In 1982 Ken Bates, a self-made millionaire from ready-mix concrete, bought Chelsea Football Club for £1, while taking on debts of £1.5 million.

At the time it wasn't the bargain it now seems. The club was struggling in the second tier of English football, Chelsea finished 18th in 1982/83 and faced becoming homeless as the Stamford Bridge freehold had been sold to property developers.

Football then was a totally different proposition. The game was marred by falling attendances, crumbling facilities and hooliganism. Live TV coverage was in its infancy and merchandising was extremely rudimentary. In short football was a declining industry. But 1982 proved to be the nadir.

The on-field fortunes of Chelsea improved in the 1980s, with the club gaining promotion to the top flight in 1984. Then, after a long legal battle, Ken Bates reunited the Stamford Bridge freehold with the club in 1992 and Chelsea became a founder member of the newly established Premier League.

At the same time football underwent a revolution. Lucrative deals for live TV improved the cash flow of top football clubs, which was often frittered away in players' wages, while facilities were modernised in the wake of the Taylor report and leading clubs were required to have all-seat stadia.

Hooliganism largely disappeared and supporting football became a much more upmarket experience. Football had cachet and the powerful and wealthy wanted to be associated with it.

In 2003, Russian oligarch Roman Abramovich bought Chelsea football club in a deal worth £140 million.

The new owner stumped up £80 million to cover the club's debts and also bought a controlling interest in Chelsea Village, which owns the football club. Twenty-one years after purchasing Chelsea for £1, Bates made a £17 million profit on his investment.

info courtesy worldwideweb