Four US-based investors are among a reported shortlist vying to buy the Premier League’s Chelsea Football Club, one of the most coveted sports franchises in the world, a new sign of the increasing influence of American money in English soccer.
Chelsea’s sale follows the imposition of UK government sanctions on current owner and Russian oligarch Roman Abramovich in the aftermath of Russia’s invasion of Ukraine. If a US investor group wins control of Chelsea, it would bring the number of Premier League clubs in which Americans have an ownership stake to 10.
A consortium including Apollo Global Management co-founder Josh Harris and David Blitzer, the global head of Blackstone‘s Tactical Opportunities group, is also among the shortlist. The duo are also managing partners of the Philadelphia 76ers.
An investor group headed by Todd Boehly, part-owner of the Los Angeles Dodgers, has also made the shortlist of bidders for Chelsea, according to reports.
It was reported last week that Clearlake Capital had joined Boehly’s consortium. Harris and Blitzer have attached British businessperson Sir Martin Broughton and politician Lord Sebastian Coe to their bid.
Also included in the shortlist is The Ricketts family, which owns the Chicago Cubs. However, emails from 2019 that contained Islamophobic remarks from family patriarch Joe Ricketts re-emerged after the family’s bid became public, which has caused controversy to cloud their bid.
The Ricketts family released a statement following the news that the emails had resurfaced stating, “Our family rejects any form of hate in the strongest possible terms.”
The fourth bidder is Stephen Pagliuca, chairperson of Bain Capital and co-owner of the Boston Celtics.
A fifth, so far undisclosed bidder has also made the shortlist, according to reports.
The sale is now expected to move to an auction style process. A final sale of the team is expected by the end of April.
The emergence of the shortlist follows a week of deliberations by The Raine Group, the US bank overseeing the sale of Chelsea, which received at least 30 bids by its March 18 deadline. The World and European Cup champions could be sold for around £2.5 billion to £2.75 billion (about $3.3 billion to $3.6 billion), according to estimates.
The Raine Group did not immediately respond to a request for comment.
A bid from a consortium led by UK Property developer Nick Candy did not make the shortlist, according to the reports.
The wave of bids for the soccer franchise comes at a time when private equity and other US investors are becoming more involved with foreign soccer clubs.
Last year, RedBird Capital Partners bought a stake in Fenway Sports Group—which owns Liverpool FC and the Boston Red Sox—at a $7.35 billion value.
In March, Miami-based 777 Partners acquired Belgian soccer club Standard Liège after landing Genoa CFC, Italy’s oldest soccer club, in September. In June, Ares Management agreed to acquire a 34% stake in Spanish soccer club Atletico Madrid for €181.8 million.
Silver Lake backed City Football Group, a network of linked clubs and other footballing operations under the aegis of Manchester City, in 2019 for $500 million.
Other examples of US investor interest in English soccer include Hollywood stars Ryan Reynolds and Rob McElhenney purchasing Welsh football club Wrexham AFC for around $2.5 million in 2020 and Harris and Blitzer’s existing stake in London’s Crystal Palace Football Club, which they would be forced to sell if they were to land Chelsea due to league rules.
Abramovich, who has owned Chelsea since 2003, has said he would donate the Chelsea net proceeds to charity.
Featured image by Craig Mercer/Getty Images
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