Clearlake Capital, Chelsea’s majority owner, is close to an agreement to buy out co-owners Todd Boehly and Mark Walter. The deal would value the club at around £5bn and allow the pair to make a profit on their investment.
On-off talks between the two ownership groups have been running for two years but intensified last month. That was because Mark Walter is seeking to raise funds to pay off insurers after a US federal investigation into alleged tax fraud.
Walter, Boehly and Swiss billionaire Hansjörg Wyss each own 12.8% of Chelsea. They bought the club with Clearlake from Roman Abramovich four years ago for £2.5bn, with a commitment to spend a further £1.75bn on the club.
Under the ownership agreement, no shareholder can sell to a third party without the consent of their partners. That gives Clearlake, whose investment is managed by Behdad Eghbali and José E Feliciano, an exclusive option to buy Boehly and Walter’s stakes.
A spokesperson for Walter confirmed to Bloomberg that a sale is close. Boehly is also expected to sell as he is a long-time investment partner of Walter. Wyss’s position is unconfirmed.
“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.
“After this exit, Mr Walter intends to make future sports-related investments. “Walter did not initiate the proposed transaction to sell his interest, which has been in the works for quite some time.”
Clearlake already has day-to-day operational control at Chelsea as 61.5% shareholder, managed by Eghbali. They were due to appoint their own chairman to replace Boehly next year, but taking complete control will ease internal tensions and smooth decision making.
The immediate impact is likely to be on Chelsea’s plans for a new stadium. Eghbali has clashed with Boehly over whether to redevelop Stamford Bridge or seek an alternative site.
Walter is being investigated by the US Department of Justice over $21bn in loans that were allegedly not disclosed to state insurance regulators. That led to the sudden sale of assets to pay down some of the loans.
Last month Walter sold his 85% stake in the Los Angeles Lakers to Josh Kushner and Bob Iger in a deal valuing the NBA franchise at around £9bn.
Walter’s holding company, TWG Global, later said it “is not looking to sell its sports assets at ‘fire sale’ prices”.
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