After 13 weeks of twists and turns, Chelsea Football Club is under new ownership.
A consortium led by Todd Boehly has taken over from sanctioned Russian billionaire Roman Abramovich and the government restrictions that threatened to derail their season have been lifted. Boehly comes with a solid track record in sports ownership having already revived the fortunes of the LA Dodgers baseball team.
But there are still plenty of questions around the sales process which saw his group acquire Chelsea and what happens now as the West London side enter a new era that brings excitement and uncertainty.
Here Mirror Football attempts to explain the who, what, where and why.
When was the deal done?
Staff were informed of its completion at the end of last week and the club released a statement on Saturday saying it was all wrapped up. A more thorough statement was published yesterday afternoon that included words from Boehly and a thank you to Abramovich, who had bought the club 19 years ago and issued his own statement on his departure.
Does this mean fans no longer need to worry about government restrictions?
The special operating licence imposed in mid-March when Abramovich was added to the sanctions list has been removed. That had stopped any investment being made into the club, left supporters unable to buy tickets and barred any recruitment or contract decisions from being made.
"The club is now no longer subject to the sanctions imposed on Roman Abramovich, an individual who has enabled [Vladimir] Putin's brutal and barbaric invasion of Ukraine," a government spokesman said on Monday evening. "Chelsea's long-term future is now secured and binding commitments have been received which ensure sanctioned individuals cannot financially benefit from the sale."
What happens to the money from the sale?
This was the sticking point for the government, who wanted clear evidence that Abramovich, who had loaned the club well in excess of £1bn during his ownership, would not make any profit. The deal to buy the club cost £2.5bn. Various stakeholders need to be paid - including the Raine Group, who oversaw the sale on Abramovich’s behalf; six different law firms; five financial advisory groups; and reported bonus payments for directors. After that the profits will go to a charity set up to benefit victims of the war in Ukraine. “We have begun the process of ensuring the proceeds are used for humanitarian purposes in Ukraine that result from Russian aggression,” the government said yesterday. “Further details will be set out in due course.”
You wrote the deal cost £2.5bn but most reports say £4.25bn?
The simple explanation is that as part of the bidding process prospective buyers needed to provide legally-binding commitments that they will invest £1.75bn in the club’s infrastructure over the next 10 years. On top of that guarantees have been given around the owners taking money from the club to ensure they do not end up in a position similar to Manchester United under the Glazer family.
The club said: “We agreed with the new owners that their group would make certain binding financial commitments, including investments in the academy and women’s team, the redevelopment of Stamford Bridge and the Chelsea Foundation. We also agreed several further conditions to ensure that the new owners continue to provide equity funding for future capital and operating expenditures, and that the club will not be laden with inappropriate financial indebtedness.”
Todd Boehly is the face of the group but who else is involved?
The LA Dodgers part-owner is the driver of the consortium but much of the financial backing has come from California firm Clearlake Capital. Mark Walter and Hansjorg Wyss, business partners of Boehly, will hold stakes. A lengthy explainer of the who’s who can be read here.
Why were they preferred to other groups?
According to Chelsea there were 250 enquiries, 100 confidentiality agreements and a dozen credible bids. Those were whittled down to four by Raine: Boehly’s group; a consortium formed by Sir Martin Broughton; American Stephen Pagliuca; and the Ricketts family, who withdrew their interest.
The success of the Dodgers and LA Lake, of whom both Boehly and Walter own a portion, strengthened their hand and so too did the absence of a conflict of interest. Pagliuca’s majority ownership of Serie A side Atalanta would have brought UEFA complications and the Broughton bid was being financed by Crystal Palace shareholders Josh Harris and David Blitzer.
What will the new owners look to do first?
The sanctions meant the club was barred from making any transfer approaches or contract renewal talks, meaning a heavy emphasis is being placed on strengthening the squad ahead of next season. Defence is the primary concern because Antonio Rudiger is leaving for Real Madrid and Andreas Christensen is expected to depart. Jules Kounde seems likely to arrive from Sevilla. Among those expected to engage in contract negotiations are midfielders Mason Mount, N’Golo Kante, Jorginho and full back Reece James.
Will there be changes to personnel?
Boehly has already met with head coaches Thomas Tuchel and Emma Hayes and there are no plans to alter the football structure. Chairman Bruce Buck and director Marina Granovskaia, both of whom were allies of Abramovich for more than two decades, will remain in position but it was notable that yesterday’s release said that “this statement has been prepared by the board as constituted immediately prior to the sale of the club.” Such careful language hints that there may be changes. Chief executive Guy Laurence is stepping down but that is reportedly unrelated to the takeover.
