L.A. Dodgers and Investors Buy Chelsea Soccer Club for an Eye-Watering $3B

A consortium led by Los Angeles Dodgers part-owner Todd Boehly bought the Chelsea Football Club (F.C.) for $3.1 billion. The sale is likely to be completed by the end of May 2022. Chelsea was owned by Russian oligarch and businessman Roman Abramovich, whose assets were frozen in the wake of the sanctions imposed on him by the British government for being close to the Russian president, Vladimir Putin.

Only time will tell whether the eventual acquisition of this soccer club will help or hurt its success. One thing’s for sure though, bookmakers - be they UK or US - will be eagerly waiting for bettors to place their wagers on this team!

U.K. Government Yet to Approve Terms
The government is yet to sign off the terms of the deal as Chelsea continues to operate as a business till May 31, being one of Abramovich’s frozen assets. The government also needs to ensure that the Russian oligarch does not profit from the deal. There are no details regarding Chelsea’s day-to-day leadership as of now.

Despite his declaration to donate the entire sales proceeds to war victims in Ukraine, Abramovich has not condemned the Russian military action. Further, the oligarch has promised to write off more than $1.9 billion worth of loans to Chelsea. Despite his earlier claims, Abramovich has been increasingly vague about his stance on the two issues.

After Abramovich bought Chelsea in 2003, the club went on to win the Premier League four times, the Community Shield in 2020, and the Club World Cup in 2021. Chelsea had spent more than $1 billion on the men’s team players who contributed to the club’s numerous victories over 19 years. However, Abramovich had to give up his position due to the sanctions.

Several bidders had competed to acquire Chelsea, including a consortium led by Chicago Cubs owner Tom Ricketts. Finally, Todd Boehly and Mark Walter and Swiss billionaire Hansjorg Wyss bagged the deal. The proposal is partly financed by private equity company Clearlake Capital. The consortium needs the approval of the Premier League to become the new owners.

Boehly’s Tenure Off to a Shaky Start
Soon after the terms of the deal had been announced, Boehly was in for a shaky start as Chelsea settled for a draw with Wolverhampton on 7 May, at the Chelsea-owned Stamford Bridge stadium, conceding its two-goal lead.

Along with the women’s team and the academy, the stadium awaits investments of $2.2 billion from the prospective owners. Previously, the plans to rebuild Stamford were stalled by Abramovich in 2018 when the British-Russian relations were in trouble.

With its ability to sell match tickets and sign new contracts curtailed by the sanctions, Chelsea might qualify for the Champions League despite losing out on the Premier League title due to the draw on 7 May. The team stands third in the rankings and has three more games to play. The women’s team is expected to win its league title on 16 May. The team expects to win the FA Cup against Liverpool FC on 14 May, at Wembley.

Chelsea’s expensive sale has surpassed the record set by NFL’s Carolina Panthers, which was purchased for $2.3 billion in 2018. The club’s head coach Thomas Tuchel was not relieved at the deal. However, he maintained an optimistic outlook and expected the process to move ahead.

Boehly Expected to Maintain Chelsea’s Winning Streak
As the new owner, Boehly is expected to maintain Chelsea’s record of being a regular winner, while retaining players and warding off competition from other owners.

Boehly is the founder and CEO of the investment firm Eldridge Industries, which boasts over 70 investments in sports, media, and entertainment. The investor possesses minority stakes in the National Basketball League’s (NBA) L.A. Lakers, the Major League Baseball’s (MLB) L.A. Dodgers, and fantasy sports company DraftKings. He is the chairman of retirement solutions provider Security Benefit and entertainment company MRC which owns Rolling Stone, Variety, and Billboard.

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