Todd Boehly of the Los Angeles Dodgers has agreed to sell Chelsea.
Chelsea has reached an agreement to sell the club for £4.25 billion ($5.2 billion) to a company led by Todd Boehly, co-owner of the Los Angeles Dodgers sports team.
Before owner Roman Abramovich was sanctioned for his alleged ties to Russian President Vladimir Putin following the invasion of Ukraine, the club was placed up for sale.
Chelsea’s new owners will pay £2.5 billion for the club’s shares, according to a statement.
The money will be placed in a frozen bank account and donated to charity.
Boehly is the consortium’s leader, but Clearlake Capital, a California-based private equity firm, would own the bulk of Chelsea’s shares. Other investors include Mark Walter, a US billionaire who is also a co-owner of the company.
The new owners have committed not to sell a majority ownership in the club until 2032 and have offered promises on dividends and debt, according to source.
The consortium said that it will invest £1.75 billion in Chelsea, including “investments at Stamford Bridge, the academy, the women’s team, and Kingsmeadow, as well as continuous funding for the Chelsea Foundation.”
Chelsea indicated in a statement that the deal will be completed in late May. The English football authorities and the UK government must both approve the takeover.
Chelsea is operating under a special government license that expires on May 31, but Culture Secretary Nadine Dorries stated last month that the team was on “borrowed time” to complete the sale.
Only a bidder who passes the Premier League’s owners and director’s test can sign off on a transaction.
According to Forbes, Boehly, an American investor and businessman, is worth $4.5 billion (£3.6 billion).
He owns a share in the legendary LA Lakers NBA franchise and is a part owner of the Dodgers, a US baseball team, and the Los Angeles Sparks, a US women’s basketball team.
His group also comprises Barbara Charone, an American public relations specialist, Jonathan Goldstein, a British businessman, and Daniel Finkelstein, a British journalist.
Other consortiums in the running to buy Chelsea included Sir Martin Broughton and Stephen Pagliuca, co-owner of the Boston Celtics, but they were advised in late April that their bids were rejected.
Sir Jim Ratcliffe, the biggest shareholder of the chemical company Ineos, made a late offer, but it was accepted.
This is the most important development since Chelsea was placed up for sale, with the Boehly consortium now confident of closing one of the most costly sporting transactions ever.
The Premier League is unlikely to object, and the government is eager to conclude the transaction.
With rival bidder British billionaire Sir Jim Ratcliffe raising worries about Clearlake Capital’s main role in the Boehly consortium, I understand the club has received assurances that the group will commit to controlling the club for at least 10 years.
Another aim, I’m told, is to reassure fans and differentiate them from the Glazers, the American family that owns Manchester United.
