The Americans are coming. Or, at least, that is what they hope as one US billionaire after another queues up for the Chelsea fire sale. Bids led by the Ricketts family, Woody Johnson and Todd Boehly are all in the race to buy out Roman Abramovich and usher in a new era at Stamford Bridge.
Among other notable contenders are UK property tycoon Nick Candy, Sir Martin Broughton and a Saudi Media-led consortium which, it is claimed, has tabled the biggest offer yet of £2.7 billion ahead of tomorrow’s deadline for bids.
The battle for the Bridge is heating up, with would-be owners laying out their credentials to US merchant bank Raine Group, which is handling the sale on behalf of Abramovich. Because, as far as this auction is concerned, it is not as simple as highest bid wins.
In this particular process, intentions will be scrutinised just as intently as financial statements. While proof of funds have been demanded of anyone declaring their interest in the European champions, the personalities of those seeking to succeed Abramovich will also be taken into account. It has felt like something of a beauty parade as the deadline draws closer.
Yesterday, Candy hitched a bona fide Chelsea legend to his wagon with confirmation that former player and manager Gianluca Vialli is acting as an adviser for his proposal. Sir Martin, meanwhile, put double-Olympic gold medallist and the man who delivered the London 2012 Games, Seb Coe, on his ticket.
The Evening Standard understands preferred bidders will have experience of owning major sports teams. That does not preclude interest from other parties — but it does give an advantage to the three Americans who want to plant the stars and stripes in the middle of Stamford Bridge. It also adds weight to Sir Martin’s bid, as a former chairman of Liverpool who also has the political acumen of Lord Coe in his corner.
“He has the vision, acumen and financial backing to ensure our club’s future success, keeping Chelsea Football Club at the top of European football and challenging for trophies,” said Lord Coe. “But most importantly, like me, he is a lifelong Chelsea supporter and Shed End season-ticket holder.
“This bid is for the millions of Chelsea fans around the world. We love our club and will always put the fans first.”
The US trio all own major franchises in America, while at least two of them have sought to buy Chelsea in the past.
The Ricketts family, who own the Chicago Cubs baseball team, had an approach rejected in 2018. Sources close to them insist that alone points to their long-standing interest in the club. Their very recent redevelopment of Wrigley Field in Chicago, which they claim cost up to $1 billion, is also cited as evidence of their suitability to take on the job that even Abramovich could not complete — the long overdue rebuild of Stamford Bridge. The heavyweight backing of Ken Griffin, who runs Chicago-based hedge fund Citadel and has a net worth of $27.5 billion, gives them ample financial might to take on the responsibility of delivering a new ground that it is estimated will cost up to £2.2 billion.
The fact that the Ricketts family already carried out much of the due diligence required when previously launching a bid also plays into the hands of the Government and the Premier League, which want a deal to be wrapped up as swiftly as possible.
The Ricketts family are confident they have the most complete proposal of any of the contenders, yet confirmation of their bid was greeted with anger among some sections of Chelsea fans yesterday.
Stories of racist emails sent by the patriarch Joe Ricketts in 2009 led to calls that they should be taken out of the running. Meanwhile, they have faced criticism at home, with the Chicago Sun-Times launching a broadside in response to their Chelsea plans. Among accusations levelled at the family was a refusal to spend on players, an exodus of talent and a sneering attitude towards questions as to why money is not forthcoming. Yet they are the owners who delivered a first World Series in over a century for the Cubs. Well-placed sources insist the ongoing success of Chelsea is key to their plans with continued investment in the team.
That is important to Abramovich, too, who made clear to Raine he wanted any new buyer to be able to continue his work after transforming Chelsea into a global superpower team over 19 years.
Boehly is joined by Swiss billionaire Hansjörg Wyss and another British property tycoon, Jonathan Goldstein. Boehly is part-owner of the Los Angeles Dodgers baseball team and has also sought to buy Chelsea in the past. Like the Ricketts family, he is confident a deal will be sped up as he has already carried out much of the due diligence. Controversially, in Goldstein, he has partnered with a financier who is a Tottenham fan. In many ways, Goldstein is the polar opposite to fellow property expert Candy. While Goldstein prefers to keep himself out of the limelight, Candy is at home when front and centre — as evidenced by his very public pursuit of the club he has supported since childhood.
Candy has very much sought to go down the populist route and hopes to garner support from fans. He doubled down on that yesterday when dismissing suggestions he was ready to partner up with Boehly, with a spokesman insisting he had no interest — “not least because Mr Candy does not want a lifelong Spurs fan as part of the future ownership of Chelsea Football Club”. It was a pointed reference to Goldstein.
Candy’s other attempts to play to the crowd include his promise to appoint a fan representative to the board — as well as the offer of a loan to stave off financial ruin while the club is forced to operate under a strict licence that prohibits the sale of tickets or merchandise.
His expertise in property, he insists, makes him best-placed to renovate Stamford Bridge. While last night’s announcement that Vialli’s company, Tifosy, will be lead advisers on his bid brought Chelsea royalty into the picture.
“I have met Nick Candy on a number of occasions over the last few weeks and I am fully behind his visions and commitment to make Chelsea the most globally recognised and supported club in the world, as well as maintaining the ongoing success on the pitch,” said Vialli, whose firm has worked with Manchester United, Juventus, Roma and Inter Milan.
But Candy still lacks the sports ownership experience that could tip the balance when Raine recommends the preferred bids. Johnson, who owns the New York Jets, is another with that on-the-job know-how that will be so vital. The former UK ambassador is said to be tabling one of the lower bids, in the region of around £2 billion, but believes his London links will boost his chances of a buyout. The 74-year-old is heir to Johnson & Johnson, with his family’s fortune estimated at £28 billion.
The bid from Saudi Media generated much interest this week, but there is uncertainty around potential ties to Saudi Arabia’s Public Investment Fund, which financed the £300 million purchase of Newcastle earlier this season.
It is believed that as many 200 potential buyers have been in contact with Raine, which has the job of whittling down contenders. And as the deadline draws closer, more names emerge.
Just yesterday $166 billion US asset manager Oaktree Capital, run by Howard Marks in LA, became the latest to be linked.
Another US billionaire, Josh Harris — who has a stake in Crystal Palace, was one of the early names in the frame.
Meanwhile, experts with knowledge of this field believe there is still the potential that the next owner of Chelsea Football Club is yet to be mentioned, such is the level of secrecy in the world of high finance.
All is soon to become clear.
