Chelsea said on Saturday that a consortium led by Todd Boehly, co-owner of the Los Angeles Dodgers, had won the battle to buy the Premier League club for £4.25 billion ($5.2 billion).
Chelsea’s owner, Roman Abramovich, put the club up for sale in early March, just days before the British government sanctioned him for Russia’s invasion of Ukraine.
Raine Group, the New York bank in charge of the transaction, chose Boehly and his partner investors after a lengthy bidding process involving multiple organizations.
Mark Walter, a fellow co-owner of the Dodgers baseball organization, is part of Boehly’s consortium, as is Swiss billionaire Hansjoerg Wyss and US investment firm Clearlake Capital.
“Chelsea Football Club can confirm that terms have been agreed for a new ownership group, led by Todd Boehly, Clearlake Capital, Mark Walter and Hansjoerg Wyss, to acquire the club,” they said in a statement.
“Of the total investment being made, £2.5 billion will be applied to purchase the shares in the club, and such proceeds will be deposited into a frozen UK bank account with the intention to donate 100 percent to charitable causes as confirmed by Roman Abramovich.
“UK government approval will be required for the proceeds to be transferred from the frozen UK bank account.”
In addition, the new owners will commit £1.75 billion in further investment “for the benefit of the club”, Chelsea said.
The total value of the deal smashes the previous record for the sale of a sports team — $2.4 billion for the New York Mets baseball franchise in 2020.
Chelsea’s 42,000-seat Stamford Bridge stadium is in desperate need of massive renovations to match the size and revenue streams enjoyed by their rivals.
With the Dodgers, though, Boehly has a track record of both stadium improvements and sporting success.
The Dodgers have made the MLB (Major League Baseball) playoffs every season for the past nine years, and in 2020, they will win their first World Series in 32 years.
The owners’ and directors’ test must still be passed by Boehly’s consortium, although Chelsea expects the deal to be finalized by the end of the month.
Boehly is expected to attend the Premier League clash with Wolves at Stamford Bridge on Saturday.
The Chelsea Supporters’ Trust said it welcomed the club’s announcement.
“We will continue to hold close discussions with the prospective owners,” it said in a statement. “We are optimistic about the future of #CFC. We hope that the sale is completed swiftly.”
– Ukraine war –
Chelsea have been forced to operate under a special license from the UK government since Abramovich, who bought the club in 2003, was sanctioned.
The billionaire, described by the UK government as part of Russian President Vladimir Putin’s inner circle, has vowed to write off the club’s £1.5 billion debt owed to him and said all proceeds of the sale would go to victims of the war in Ukraine.
There had been fears over the future of Chelsea if a sale was not finalized before the license runs out on May 31 — ministers warning the club was on “borrowed time.”
Under the terms of the license, Chelsea was unable to offer new contracts to existing players or sign players from other clubs.
The sale of the European champions marks an end to Abramovich’s 19-year run of near-unbroken success, which includes five Premier League crowns and two Champions League successes.
Chelsea’s form has slipped recently after being on a winning streak following Abramovich’s decision to sell the club.
They lost in the Champions League quarter-finals to Real Madrid, but should still qualify for next season’s competition if they finish in the top four in the Premier League.
They still have a chance to win their 20th major prize under Abramovich when they face Liverpool in the FA Cup final next week.
