Finance

Two U.S. Billionaires Are Reportedly Lead Bidders For Chelsea F.C.

03/24/2022
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Topline

The new owners of the famed English soccer team Chelsea F.C. may be Americans, the Financial Times reported Thursday, noting that the leading bids in the race to buy the club from Russian oligarch Roman Abramovich came from billionaire Todd Boehly, in one bid, and billionaire Josh Harris and his partner David Blitzer, in a separate bid.

Key Facts

One of the top two bids is backed by Boehly, part-owner of Los Angeles Lakers and Dodgers, who has partnered with Swiss billionaire Hansjörg Wyss, FT reported, citing people who knew about the matter.

The other preferred bid is backed by Harris and Blitzer, both of whom are part-owners of the NBA’s Philadelphia 76ers and NHL’s New Jersey Devils, FT reported.

Harris and Blitzer also each have an 18% stake in Crystal Palace FC, so they would have to divest ownership if their Chelsea bid goes through, CBS reported.

A reported 200 inquiries were made about the sale after Abramovich put Chelsea up for sale earlier in the month.

Abramovich bought Chelsea for around $190 million in 2003, and the team is now valued at $3.2 billion, according to Forbes’ estimates.

Tangent

In 2019, Boehly made a $2.9 billion offer to purchase the team, Sky Sports reported.

Key Background

Forbes previously reported that Abramovich had fielded offers for the team as early as three years ago. European clubs tend to be sold for two to four times revenue, Bloomberg reported. Chelsea generated $520 million in revenue in the 2019-20 season, though it lost $190 million in the fiscal year ending in June 2021. As losses mount, sanctions imposed on Abramovich by the United Kingdom have banned the club from selling merchandise or tickets, pushing Chelsea into a panic-sale. The next step after choosing a buyer would be to seek approval from the U.K. government to sell the team.

Further Reading

Bids led by two US billionaires take the lead in £3bn race to buy Chelsea FC (Financial Times)

Why Owners Of U.S. Sports Teams Have The Advantage In Chelsea’s Global Bidding War (Forbes)

Hurry Up And Wait: U.K. Sanctions Leave Roman Abramovich And A Growing List Of Chelsea Suitors In Limbo (Forbes)

U.K. Sanctions Roman Abramovich And Six Other Russian Oligarchs, Freezes Assets Including Chelsea F.C. (Forbes)

Russian Billionaire Roman Abramovich To Sell Chelsea FC–Donate Proceeds To Help Victims In Ukraine (Forbes)

Source: https://www.forbes.com/sites/lisakim/2022/03/24/two-us-billionaires-are-lead-bidders-for-chelsea-fc/