Chelsea are facing another change at ownership level, four years after the government forced Roman Abramovich to sell the club in 2022. Mark Walter and Todd Boehly are reportedly in talks with their fellow BlueCo founders, Clearlake Capital, to sell their stakes in the Premier League club.
Stake structure and talks
Clearlake Capital is the equity firm which is the club's majority owner, with 61.5 per cent of the shares, while the remaining 38.5 per cent is split evenly among Boehly, Hansjorg Wyss and Walter. Buying out Boehly and Walter would take Clearlake's total stake to over 80 per cent. It is said that stakeholders can sell their stakes only to each other during the first decade of their ownership.
The Financial Times reports that talks are now progressing after years of sporadic negotiations between the parties. However, it remains uncertain whether they will reach an agreement despite these latest developments. The latest reporting cites people briefed on the matter. Chelsea have refused to comment when contacted by Reach plc.
Background and valuation
Boehly and Walter have been at loggerheads with Clearlake for the past two years - half their time as partners - with the former serving as chairman and holding equal governance and joint control. Walter's investment empire is currently under scrutiny by the U.S. Attorney's Office and the Securities and Exchange Commission (SEC) over alleged financial improprieties, according to Bloomberg. They claim two of his insurance firms and the global investment and advisory financial services company Guggenheim Partners are being probed.
The businessman has recently offloaded the Los Angeles Lakers basketball franchise for more than £9billion - a sale that occurred just 12 months after securing majority ownership last summer. The Telegraph cites a source outside Walter's office stating: "Of course, there is speculation that Mark Walter would be open to selling his stake in Chelsea."
Valuation and next steps
According to the publication, Boehly and Walter value Chelsea at over £5billion and together they own just over 25 per cent. This equates to each owning 12.8 per cent, with Hansjorg Wyss holding the remaining 12.8 per cent. Therefore, based on this overall valuation, they would be seeking more than £1.25million.
In 2022, the consortium of Boehly, Clearlake, Walter and Wyss purchased Chelsea for £2.5billion, along with a pledge to invest an additional £1.75billion. They would therefore aim to at least double what they paid for their shares, excluding the further committed investment. Boehly is also set to step down as Chelsea chairman at the end of this season, marking the conclusion of his five-year term, with Clearlake assuming the role.
