Chelsea's ownership structure is set for a major shake-up, with majority owners Clearlake Capital reportedly closing in on a deal to buy out co-owners Todd Boehly and Mark Walter. The agreement would hand the pair a profitable exit from their investment and reportedly value the west London club at approximately £5bn.
Discussions between the two ownership factions have reportedly been ongoing intermittently for around two years, but talks accelerated in recent weeks after Walter began seeking funds to settle obligations with insurers linked to a US federal investigation into alleged tax fraud.
Boehly, Walter and Swiss billionaire Hansjörg Wyss each hold a 12.8% stake in Chelsea, stemming from their joint £2.5bn acquisition of the club alongside Clearlake from former owner Roman Abramovich four years ago. That takeover deal also included a commitment from the new ownership group to invest a further £1.75bn into the club.
The ownership agreement reportedly stipulates that no shareholder can sell their stake to an outside party without consent from their partners, effectively giving Clearlake — whose investment is overseen by Behdad Eghbali and José E Feliciano — first rights to purchase any shares Boehly and Walter wish to sell.
A spokesperson for Walter confirmed to Bloomberg that he is pursuing a sale, with a deal reportedly close to completion. Boehly, described as a longtime investment partner of Walter's, is also expected to sell his stake, though Wyss's intentions remain unclear.
"This potential transaction values Mark Walter's stake in Chelsea Football Club at a premium to his initial investment and is another successful sports investment for him," a spokesperson for Walter said. The statement added that "after this exit, Mr Walter intends to make future sports-related investments," and stressed that "Walter did not initiate the proposed transaction to sell his interest, which has been in the works for quite some time."
Clearlake already held a 61.5% majority stake and day-to-day operational control of the club under Eghbali's leadership. The group had also been expected to appoint its own chairman to succeed Boehly next year. Assuming full ownership would likely reduce internal friction within the boardroom and streamline decision-making processes going forward.
One of the most significant consequences of the ownership change could involve Chelsea's long-term stadium strategy. Eghbali and Boehly have reportedly disagreed over whether the club should pursue a redevelopment of Stamford Bridge or explore building a new stadium at a different location.
Walter's situation has been complicated by a US Department of Justice investigation examining $21bn in loans that authorities allege were not properly disclosed to state insurance regulators. That scrutiny has already prompted the rapid sale of some of his assets to reduce outstanding debt. Last month, Walter sold his 85% stake in the NBA's Los Angeles Lakers to Josh Kushner and Bob Iger in a transaction valuing the franchise at roughly £9bn.
Following that sale, Walter's holding company TWG Global issued a statement insisting it "is not looking to sell its sports assets at 'fire sale' prices," seeking to push back against suggestions that financial pressure was forcing hasty disposals.
Representatives for both Boehly and Clearlake have declined to comment on the reported Chelsea negotiations, leaving the final terms and timeline of any takeover still unconfirmed.
Based on reporting from The Guardian.