Sports

Chelsea sells for $ 3 million to LA Dodgers owners and investors

LONDON – Chelsea are being sold to a consortium led by US sports investor Todd Boehly, which ended 19 years of ownership and luxurious investment by Roman Abramovich until the Russian oligarch was sanctioned and forced to leave the Premier League club.

The £ 2.5 billion ($ 3.1 billion) sale price is the most lucrative for a sports team in the world, but Abramovich is unable to receive the proceeds, which he hopes will go to a foundation for war victims. Ukraine. It is committed to investing another £ 1.75 billion ($ 2.2 billion) in the current winners of the FIFA Club World Cup.

Chelsea said on Saturday that the terms for the purchase of the West London club had been agreed with a consortium that also includes Mark Walter, who is also part of the Dodgers group, Swiss billionaire Hansjorg Wyss and funding from private equity firm Clearlake Capital .

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The Premier League must approve them as the new property and the government has to sign the new one under the terms of the license which allows Chelsea to continue operating as a company until 31 May as long as it is one of Abramovich’s frozen assets.

Abramovich said he would cancel more than £ 1.5bn ($ 1.9bn) in loans to Chelsea, but that he was complicated by sanctions imposed by the British government as part of a crackdown on wealthy Russians with ties to President Vladimir. Putin after the invasion of Ukraine in February.

Chelsea are still waiting for the sale to be completed by the end of May.

“The proceeds will be deposited in a frozen UK bank account with the intention of donating 100% to charities, Roman Abramovich confirmed,” Chelsea said in a statement.

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Boehly is already in London to watch Chelsea’s Premier League game against Wolverhampton at Stamford Bridge on Saturday. Thomas Tuchel’s side are third in the standings with four games to go with the title out of reach but qualifying for the Champions League is closer to securing.

Chelsea have the smallest and most outdated stadium of the most successful clubs in the Premier League, with plans to rebuild the 41,000-seat venue that Abramovich suspended in 2018 as British and Russian diplomatic tensions worsened.

Chelsea have said £ 1.25bn will be used to fund investments at Stamford Bridge, the academy and the women’s team, which could win its league title on Sunday.

Boehly is the owner of the Los Angeles Dodgers MLB franchise and also has minority stakes in the NBA Los Angeles Lakers and the WNBA Los Angeles Sparks.

The challenge will be to maintain the expectation of regular trophies produced under the costly transformation of Chelsea following the purchase of Abramovich, with 21 collected in 19 years.

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Chelsea had won the league title only once, in 1955, when Abramovich bought the club in 2003. Aided by a series of expensive signings, the club won the Premier League title two years later and has added four more since then. recent in 2017..

There is increased competition from wealthy landlords to buy and retain players, only in England. Manchester City have benefited from investment in Abu Dhabi since 2008 and Saudi Arabia’s sovereign wealth fund bought Newcastle last year.

No details have been provided on the future daily leadership of Chelsea, which was the first Premier League club to benefit from a mega-rich foreign investor in 2003.

Boehly, who studied at the London School of Economics, co-founded the investment firm Eldridge Industries in 2015 and serves as chairman and CEO. The private holding company has investments in more than 70 companies, including sports, entertainment and media.

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In addition to the Los Angeles Dodgers, Boehly has minority stakes in the NBA’s Los Angeles Lakers, the WNBA’s Los Angeles Sparks, the e-sports organization Cloud9, and DraftKings, an American fantasy sports betting company.

He is president of Security Benefit, a retirement solution provider based in Topeka, Kansas, and of MRC, an entertainment company that finances and produces film and television programming, including such important programs as the Golden Globes, the American Music Awards and the Billboard Music Awards.

Other MRC holdings include Billboard owner Penske Media, Rolling Stone, Variety and the Hollywood Reporter.

Prior to co-founding Eldridge, Boehly was president of Guggenheim Partners. Walter, who joined Boehly to buy Chelsea, is the CEO of the financial services firm.

His first chance to see Chelsea win a trophy is next Saturday. Liverpool are rivals in the FA Cup final at Wembley Stadium.

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Chelsea sells for $ 3 million to LA Dodgers owners and investors

Source link Chelsea sells for $ 3 million to LA Dodgers owners and investors

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