Here’s Why The Ricketts-Led Bid For Chelsea May Have An Edge

As Chelsea FC’s search for a new owner nears a close, one group has emerged with a decided advantage over its adversaries. Forbes has confirmed that the bid led by Chicago Cubs owners Tom and Laura Ricketts is the only all-equity bid among the four finalists. The bidding is expected to close on April 18 when Raine Group, the advisor on the transaction, will present a single offer to the Premier League and the U.K. government. Representatives from the Ricketts family and the Raine Group did not immediately respond to a request for comment.

Finding a new owner will mark the end of an arduous process that has thrown one of England’s most beloved soccer clubs into turmoil. Roman Abramovich put Chelsea, which Forbes ranked as the world’s seventh-most-valuable soccer club at $3.2 billion in 2021, up for sale in early March, following Vladimir Putin’s invasion of Ukraine and the subsequent crackdown on Russian oligarchs. At the time, Abramovich promised to donate the sale proceeds to charity. As the pressure of sanctions mounted, the U.K. government moved quicker, seizing the club from Abramovich and granting Chelsea a special license to operate in the interim.

Rumors of who will next step into the owner’s box at Stamford Bridge have swirled for weeks, and have included everyone from British real estate magnate Nick Candy to New York Jets owner and former U.S. ambassador to the U.K. Woody Johnson. The final four were selected in March, and all of them are connected to American sports. In addition to the Ricketts-led group, bids came in from Los Angeles Dodgers and Lakers co-owners Todd Boehly and Mark Walters, Philadelphia 76ers and New Jersey Devils owners Josh Harris and David Blitzer, and Boston Celtics co-owner Stephen Pagliuca (with Facebook cofounder Eduardo Saverin).

“Every one of them is experienced and exceptional here in the United States,” says Marc Ganis, president of the consulting firm Sportscorp, who has worked with numerous sports teams and owners.

Whoever does take over will need deep pockets. Chelsea has been a money-losing enterprise for some time now, so much so that Abramovich has had to shell out roughly $2 billion in personal loans since buying the club for $190 million in 2003 to keep things afloat. (He has publicly stated he will waive the debt in the event of a sale.) In total, Chelsea has posted a loss of $167 million over the last two fiscal years, all while spending $396 million on acquiring new players over the last two seasons.

That’s one reason an all-cash bid would be seen as so attractive and why the Ricketts-led bid could be the front runner. While Tom and Laura’s dad—Joe Ricketts, who is not involved in the deal—is worth $4.5 billion, the parties his kids joined forces with are worth much more. The bidding group also includes Citadel founder and CEO Ken Griffin and Cleveland Cavaliers owner Dan Gilbert. As of Tuesday, the three partners had a collective fortune of nearly $52 billion. An all-equity deal would mean Chelsea wouldn’t be constricted by debt-service payments or have to worry about finding funds to invest in Stamford Bridge and the club’s star-studded roster.

Not that the cash deal is currying them any favor among Chelsea’s fan base.

According to a survey conducted by the Chelsea Supporters’ Trust, 77% of members do not support the Ricketts-led bid, and 72% “do not currently have confidence that the Ricketts family would run an inclusive and successful club.” The mistrust stems, in part, from racist and anti-Muslim emails Joe Ricketts sent to family friends and others over several years that were leaked in 2019. Joe Ricketts, who has no role in the bid, has since apologized. The family also shared its vision for the club by presenting an eight-point plan to Chelsea fans that pledges to “put diversity and inclusion at the heart of the club and fight against any form of discrimination or inequality.”

Regardless of finances, the Ricketts group is an especially strong option. The family, which bought the Cubs in 2009, already has experience turning around an iconic brand, finally snapping that team’s 108-year championship drought in 2016. They could also take some of the lessons learned from renovating Wrigley Field to modernizing Stamford Bridge, which is in desperate need of upgrades as London rivals Tottenham, Arsenal and West Ham have all recently moved into state-of-the-art venues. (Stamford Bridge is owned by the nonprofit Chelsea Pitch Owners, which granted the club a 199-year lease at a nominal rate.)

Wrigley Field and Stamford Bridge are “very similarly situated,” Ganis says. “It’s in the middle of a vibrant neighborhood with lots of residential and lots of entertainment, similar to Stamford Bridge, and they’ve been very sensitive to the neighbors and the neighborhood, which is important.”

Edge or not, Ganis and several other sources in the industry admit the race is still too close to call. Ganis adds that all four bids bring unique experiences from other industries on top of their sports ownership, not to mention a track record of empowering the right people and avoiding micromanagement.

“You have 1A, 1B, 1C, 1D,” Ganis says. “Whatever happens, I think the Chelsea fans, the Chelsea supporters are going to be well served with this change.”