- History of Chelsea’s Redevelopment and financial crisis.
History of Chelsea F.C. (1983–2003)
The late 1970s through to the ’80s was a turbulent period for Chelsea. An ambitious redevelopment of Stamford Bridge threatened the financial stability of the club, star players were sold and the team were relegated. Further problems were caused by a notorious hooligan element among the support, which was to plague the club throughout the decade.
In 1982, at the nadir of their fortunes, Chelsea were acquired by Ken Bates from Mears’ great-nephew Brian Mears, for the nominal sum of £1. Bates bought a controlling stake in the club and floated Chelsea on the AIM stock exchange in March 1996 although by now the Stamford Bridge freehold had been sold to property developers, meaning the club faced losing their home.
On the pitch, the team had fared little better, coming close to relegation to the Third Division for the first time, but in 1983 manager John Neal put together an impressive new team for minimal outlay. Chelsea won the Second Division title in 1983–84 and established themselves in the top division with two top-six finishes, before being relegated again in 1988. The club bounced back immediately by winning the Second Division championship in 1988–89.
After a long-running legal battle, Bates reunited the stadium freehold with the club in 1992 by doing a deal with the banks of the property developers, who had been bankrupted by a market crash. In the mid-1990s Chelsea fan and businessman Matthew Harding became a director and loaned the club £26 million to build the new North Stand and invest in new players.
Chelsea’s form in the new Premier League was unconvincing, although they did reach the 1994 FA Cup final. The appointment of Ruud Gullit as player-manager in 1996 began an upturn in the team’s fortunes. He added several top international players to the side and led the club to their first major honour since 1971, the FA Cup.
Gullit was replaced by Gianluca Vialli, whose reign saw Chelsea win the League Cup, the UEFA Cup Winners’ Cup and the UEFA Super Cup in 1998, and the FA Cup in 2000. They also mounted a strong title challenge in 1998–99, finishing four points behind champions Manchester United, and made their first appearance in the UEFA Champions League. Vialli was sacked in favour of Claudio Ranieri, who guided Chelsea to the 2002 FA Cup final and Champions League qualification in 2002–03.
