After nearly three-month long process, Chelsea’s sale was officially completed on Monday. The UK government confirmed that the club was no longer subject to sanctions after the sale was officially rubber-stamped.
File image of Stamford Bridge stadium in London. AFP
After nearly three-month long process, Chelsea’s sale was officially completed on Monday. The UK government confirmed that Chelsea were no longer subject to sanctions after the sale was officially rubber-stamped.
Todd Boehly’s consortium agreed a deal to buy Chelsea from Roman Abramovich for ?4.25 billion ($5.3 billion) on 7 May. The club received more than 250 inquiries after Roman Abramovich put the club up for sale in March.
“We are honoured to become the new custodians of Chelsea Football Club. We’re all in, 100 percent, every minute of every match,” Boehly told Chelsea’s website.
Boehly’s takeover ends Roman Abramovich’s 19-year reign as Chelsea owner after the Russian put the club up for sale in March. We take a look at how the Chelsea saga unfolded:
How did it all start?
Roman Abramovich, a Russian oligarch known to have close ties with Russia president Vladimir Putin, came under increased government scrutiny after Russia’s invasion of Ukraine. Fearing sanctions, he ultimately decided to put Chelsea up for sale in March with the best interest of the club in mind.
As expected, the UK government on 10 March announced sanctions on him that essentially put a freeze on Abramovich’s assets, including Chelsea Football Club.
As long as the club was owned by Abramovich, Chelsea could not generate new avenues of income and any revenue that was to be received had to be frozen.
This effectively meant that the club could not sell new tickets or merchandise, but existing agreements would continue to be honoured, including for season ticket holders and tickets sold prior to 10 March.
Chelsea had been operating under a special government licence which would have expired on May 31 if Boehly had been unable to seal the purchase.
That would have put Chelsea’s future in doubt, but they are now able to look forward to next season as the Boehly regime takes the keys to Stamford Bridge.
Who owns Chelsea now?
The new ownership consortium is led by LA Dodgers part owner Boehly. Although he is the face of the group, it is backed by investment firm Clearlake Capital. Swiss billionaire Hansjorg Wyss and US tycoon Mark Walter are the other main members of the consortium.
Boehly fought off 11 rival bidders to buy Chelsea in what is a record sale for a sports club.
He will “share joint control and equal governance of the club” with his main partner Clearlake Capital investment firm.
Boehly is Chelsea’s controlling owner, but will work closely with Clearlake co-founders Behdad Eghbali and Jose Feliciano.
How much has Boehly paid to buy Chelsea?
According to the numbers shared by the club in a statement published May 6, Boehly’s group is purchasing the club in a deal worth $5.25 billion (?4.25 million), making it the most expensive team transaction in sports history.
Chelsea confirmed the $3.1 billion would be “deposited into a frozen UK bank account with the intention of donating 100 percent to charitable causes as confirmed by Roman Abramovich.”
Can Abramovich profit from the sale?
As part of the UK sanctions against Abramovich, he cannot legally benefit financially from the sale of Chelsea or any other assets he owns in the UK.
“All proceeds from the sale will be held in a bank account in the United Kingdom, which will be frozen in accordance with the Russia Regulations,” the official statement issued by the government reads.
The government reiterated that The Treasury will not issue a licence which enables any part of the proceeds from the sale to directly or indirectly benefit Abramovich.
Abramovich has already confirmed his intention of donating the proceeds of the eventual sale to charity.
What next for Chelsea?
After the Blues confirmed the transfer of ownership on Monday, the club, therefore, secured its future as previously they had to rely on a special licence granted by the government to operate.
However, the government will continue its role in controlling the proceeds from the sale, although Chelsea can now operate as normal under new ownership.
Chelsea can now renew transfer activity and extend contracts with their players, which was prohibited as part of the sanctions.
One of the top priorities for the club would be to stabilize the squad. Chelsea are already in the hunt for a centre-back with both Antonio Rudiger and Andreas Christensen leaving. Sevilla’s Jules Kounde is one of the likely replacements. But first the new owners will look to safeguard their core as club captain Cesar Azpilicueta and Marcos Alonso are also about to enter final year of their contract.
Chelsea’s new owners are also likely to redevelop Stamford Bridge into a stadium worthy of one of Europe’s elite clubs.
Stamford Bridge’s capacity of 42,000 lags well behind Premier League rivals Manchester United, Manchester City, Liverpool, Arsenal and Tottenham.
Investment in the stadium was reportedly a key part of the consortium’s pitch to American bank Raine, who oversaw the sale process.
As far as the fans are concerned, they will finally be relieved that their club at last has a new owner.
However, they will be anxious that Boehly and his consortium rebuild the club’s reputation that took a big hit after the European Super League debacle and the sanctioning of Abramovich.
With inputs from agencies
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