Chelsea chairman Todd Boehly and director Mark Walter are weighing up the possibility of selling their stakes in the club to majority shareholder Clearlake Capital, a move that would hand the private equity firm full control at Stamford Bridge.
Clearlake, whose investment is overseen by Behdad Eghbali and José E Feliciano, currently holds more than 60% of Chelsea. However, under the uncommon structure established when the club was acquired from Roman Abramovich four years ago, operational authority is shared with a group led by Boehly. Walter, Hansjörg Wyss and Boehly each possess a stake of roughly 13%.
The two ownership factions have been at an impasse for nearly two years. The tension became public when reports suggested that both sides wanted to purchase the other’s holding after clashing over the club’s direction, especially plans for a new stadium.
Talks about a possible transaction valuing Chelsea at more than £5bn have restarted in recent weeks, according to the initial report. Walter is reportedly attempting to secure funds to repay insurers amid a US federal inquiry into suspected tax fraud.
The US Department of Justice is examining Walter in connection with $21bn of loans that were allegedly not declared to state insurance regulators. The situation has prompted a rapid disposal of assets to reduce some of that debt. Walter recently sold the Los Angeles Lakers to Josh Kushner and Bob Iger for $12.5bn, only a year after purchasing the NBA organisation for $10bn, fuelling suggestions that the 66-year-old could also leave Chelsea.
In addition to being close friends, Boehly and Walter have a long history as business associates. Their previous joint investments include Major League Baseball’s LA Dodgers and the WNBA’s LA Sparks.
Alongside Wyss, Boehly and Walter hold a combined 38% of Chelsea through Blueco 22 Holdings, although it remains uncertain whether the Swiss billionaire would also consider selling. The conditions attached to the £2.5bn acquisition from Abramovich, completed after the UK government sanctioned the Russian following the invasion of Ukraine, prevent any shareholder from selling to an outside party without approval from the other partners.
A deal with an external buyer therefore appears improbable, leaving Clearlake well placed to secure the total control it has pursued for some time. Boehly and Walter, however, are expected to seek substantially more than the £325m they paid for their holdings four years earlier.
If Boehly and Walter complete a sale, Clearlake would own more than 86% of Chelsea and gain effective authority over the club. That would include control of the stadium project, which the firm wants to keep at Stamford Bridge.
Walter has maintained a low profile and rarely appeared publicly in connection with Chelsea. Boehly, by contrast, became the club’s most visible representative after the 2022 takeover and served temporarily as sporting director during that summer’s transfer period, overseeing deals for players including Raheem Sterling and Marc Cucurella.
After a year, Boehly withdrew from his direct involvement, while Eghbali assumed greater day-to-day responsibility for Clearlake. Despite stepping back, Boehly has frequently faced criticism from supporters over the team’s disappointing results.
Under the ownership arrangement, Boehly was expected to leave his position as chairman at the end of the season, with a Clearlake appointee due to take over for the following five years.
A departure now would carry a degree of irony. After several years of significant spending on young footballers with future resale potential, a policy favoured by Clearlake, Chelsea have shifted back toward Boehly’s initial approach by recruiting experienced players such as Danny Welbeck and Jordan Henderson this summer.
Clearlake, Boehly and Chelsea were contacted and invited to respond.
What do you feel about this post?
Like
Love
Happy
Haha
Sad
