Chelsea’s controlling shareholder, Clearlake Capital, is reportedly nearing a deal to acquire the interests held by fellow owners Todd Boehly and Mark Walter. The transaction would generate a return for both investors and place the club’s overall valuation at approximately £5bn.
Discussions between the two ownership sides about a possible sale have taken place intermittently for roughly two years. Negotiations gained momentum last month after Walter sought additional funds to settle obligations with insurers amid a US federal inquiry into alleged tax fraud.
Walter, Boehly and Swiss billionaire Hansjörg Wyss each hold a 12.8% share in Chelsea. They obtained their stakes when they joined Clearlake in purchasing the club from Roman Abramovich for £2.5bn four years ago, with the ownership group also pledging to invest another £1.75bn.
Chelsea’s ownership terms prevent any shareholder from transferring their stake to an outside buyer without approval from the other partners. This arrangement gives Clearlake, whose investment is overseen by Behdad Eghbali and José E Feliciano, the exclusive right to acquire the holdings owned by Boehly and Walter.
A representative for Walter confirmed in a statement that he is pursuing a sale and that an agreement is close. Boehly, who has been Walter’s investment partner for many years, is also expected to dispose of his stake. Wyss’s intentions remain unclear.
“The proposed deal places a higher value on Mark Walter’s Chelsea Football Club stake than his original investment, representing another profitable venture in sport for him,” Walter’s spokesperson said.
“Once the sale is completed, Mr Walter plans to continue pursuing investments connected to sport. He did not initiate the proposed disposal of his interest, and discussions surrounding the transaction have been under way for a considerable period.”
Clearlake, which owns 61.5% of Chelsea, already controls the club’s daily operations under Eghbali’s leadership. It was also expected to appoint a new chairman to succeed Boehly next year. Securing full control could reduce disagreements within the ownership structure and make decisions easier to implement.
The anticipated ownership shift may have its earliest major effect on Chelsea’s stadium strategy. Eghbali and Boehly have disagreed over whether Stamford Bridge should be rebuilt or the club should move to a different location.
Walter is under investigation by the US Department of Justice regarding $21bn in loans that were allegedly not reported to state insurance regulators. The matter is said to have prompted an unexpected disposal of assets to reduce some of that debt.
The US insurance and sports investor sold his 85% interest in the Los Angeles Lakers last month to Josh Kushner and Bob Iger. The agreement valued the NBA team at about £9bn.
Walter’s holding business, TWG Global, later released a statement declaring that it had no intention of disposing of its sporting assets at heavily reduced prices.
Spokespeople for Boehly and Clearlake chose not to provide a response.
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