Chelsea Chairman Boehly in Talks to Sell Stake to Clearlake Capital

Chelsea chairman Todd Boehly is reportedly in discussions to divest his stake in the club to current majority owner Clearlake Capital. According to a Financial Times report, Boehly and co-controlling owner Mark Walter have initiated talks regarding the potential sale of their combined 12.8 percent ownership in Chelsea. This transaction could reportedly value the football club at over £5 billion.

Such an agreement could potentially ease existing tensions within the club's ownership consortium, which assumed control of Stamford Bridge in 2022. Boehly, Walter, Clearlake, and Hansjorg Wyss initially acquired Chelsea for £2.5 billion in May 2022, with their BlueCo consortium pledging an additional £1.75 billion in investment.

The Daily Telegraph indicates that Boehly and Walter now place the club's valuation at £5 billion, a figure reflected in the estimated worth of their individual shares. Clearlake, a private equity firm, currently holds a dominant 61.5 percent stake in Chelsea. The remaining shares are divided equally among Walter, Boehly, and the 90-year-old Wyss.

Speculation has previously suggested that both Clearlake and Boehly might be open to buying out each other's stakes. Furthermore, it has been suggested that Clearlake would be willing to acquire shares from any of its consortium partners.

The news follows Mark Walter's recent agreement to sell his stake in the NBA's Los Angeles Lakers to Josh Kushner and Bob Iger for $12 billion (£9.4 billion). This sale occurs while Walter faces scrutiny from the US attorney’s office. The Wall Street Journal reported that the US attorney’s office and the Securities and Exchange Commission are investigating a financial arrangement where billions in loans to entities linked to Walter or his TWG Global holding company were channeled through a third party before appearing on the books of insurance businesses.

TWG Global released a statement asserting, "Mark Walter and TWG have always acted in good faith, and those who have done business with Mark know him as honest and straightforward. We are cooperating with authorities, and we are confident these matters will be resolved favourably."

There is currently no indication that the Lakers sale is connected to this investigation. Boehly was involved in Walter's deal to gain majority control of the Lakers last year, but his current interest in the franchise following the sale has not been disclosed.

Boehly and Walter, who also co-own the MLB's Los Angeles Dodgers and the WNBA's Los Angeles Sparks, are reportedly restricted to selling their Chelsea shares only to Clearlake or Wyss. This is due to clauses within the original Chelsea takeover agreement, which are believed to prohibit major shareholders from selling to external investors for the initial ten years of ownership.

This year marks the end of Boehly's five-year tenure as Chelsea chairman, with the role expected to transition to Clearlake next May. Clearlake representatives Behdad Eghbali and Jose E Feliciano currently serve as co-controlling owners alongside Boehly, with all three individuals required to approve key decisions.