A consortium led by Todd Boehly, owner of the LA Dodgers and backed by Clearlake Capital, has signed an agreement to acquire Chelsea Football Club.
Chelsea confirm that terms have been agreed for a new ownership group led by Mr Boehly, Clearlake Capital, Mark Walter and Swiss billionaire Hansjorg Wyss to acquire the club in a deal worth around 4.25 billion pounds.
Mr. Boehly, chief executive officer of Eldridge Industries, led the group’s bid, but US investment firm Clearlake Capital is expected to hold a majority stake.
The proposal will now be put before the UK government and the Premier League for approval.
In a statement provided to Sky News, Chelsea said: “The acquisition is expected to be completed by the end of May subject to all necessary regulatory approvals.
“Details will be provided at that time.”
Mr Boehly was in London on Friday night and is expected to attend Chelsea’s Premier League clash with Wolves at Stamford Bridge later today.
The club has been owned by Russian billionaire Roman Abramovich since 2003 and it won 19 major titles during his tenure.
But in March, he put the club up for sale just days before he sanctioned by the British government in response to Russia’s invasion of Ukraine.
The government accused him of having a “close relationship for decades” with Russian President Vladimir Putin.
Todd Boehly leads joint venture bid but Clearlake Capital is expected to hold majority stake
Several parties expressed interest but groups led by Boston Celtics co-owner Stephen Pagliuca and former British Airways chairman Martin Broughton were excluded from the bidding process.
A consortium led by the owners of the Chicago Cubs led by the Ricketts family has withdrawn from the race, and a belated bid from British billionaire Jim Ratcliffe has been turned down.
Boehly Corporation is understood to have agreed provisions preventing the payment of dividends or management fees until 2032also banned the sale of any Chelsea shares for 10 years.
Chelsea FC said of the deal with Mr Boehly’s consortium: “Of the total investment being made, £2.5 billion will be applied to purchase shares of the club and the proceeds will be deposited into a frozen UK bank account with the intention of giving 100% to charitable causes as confirmed by Roman Abramovich.
“UK government approval is required for the proceeds to be transferred from a frozen UK bank account.
“In addition, the proposed new owners would commit to an additional £1.75 billion investment for the benefit of the club.
“This includes investments in Stamford Bridge, the Academy, the Women’s Team and Kingsmeadow and continued funding of the Chelsea Foundation.”
On Thursday, Mr Abramovich insisted he still wanted to write off Chelsea’s £1.5bn debt once the club’s sale was completed.
However, that loan could not be written off under Abramovich’s sanctions terms, and it is expected to be frozen upon completion of the sale.
