The key shareholders of Chelsea FC are reportedly reconsidering their ownership dynamics, a mere two years after the consortium led a successful bid for the Premier League club. This development has been linked to worsening relations among the equity partners, according to insiders.
Clearlake Capital, a private equity entity out of California that retains the majority stake, together with Todd Boehly, a US entrepreneur, are deliberating the possibility of a buyout. Their relationship, once collaborative during the turbulent acquisition of Chelsea in 2022, has been strained recently. Disappointing results on the pitch despite substantial investments are said to be the root cause of the rift.
Varied perspectives on matters such as the club’s player acquisition strategy, the team’s lacklustre performance, and disappointments on stadium development efforts have only served to widen the fracture between the partners.
Clearlake holds over a 60% stake in Chelsea, with the remaining shares divided between Boehly, US businessman Mark Walter, and Swiss tycoon Hansjörg Wyss. Reports from 2022 indicated that Boehly was scaling down his role at Chelsea following a challenging inaugural season.
Despite these internal issues, both Clearlake and Boehly are dedicated to running the club professionally, according to those in the know. Boehly, a representative for Clearlake, and Chelsea FC have declined to comment on the matter.
The Clearlake and Boehly led consortium bought the club from Russian billionaire Roman Abramovich in a transaction valued at over £4 billion. Under Abramovich, Chelsea had emerged as one of England’s top teams, securing domestic and European trophies.
Albeit the new owners spending over a billion pounds on new players, Chelsea’s fortunes have dwindled. The club has been attempting to maintain financial sustainability and conform to Financial Fair Play regulations by offloading local players like Conor Gallagher and selling assets such as hotels near their home, Stamford Bridge stadium in West London. Some players, for instance, Angelo Gabriel, have been bought and transferred without ever playing a match for Chelsea.
Speaking to Bloomberg News, Boehly had conveyed optimism, stating that the owners were striving to develop a solid long-term foundation, an effective leadership team, and aim to adapt to the changing landscape within the sport.