Clearlake close on buying Chelsea stakes from Boehly and Walter

Clearlake Capital is close to finalising a deal to buy out Chelsea co-owners Todd Boehly and Mark Walter, according to The Guardian. The talks between the ownership groups have been ongoing in a stop-start fashion for roughly two years, but they intensified last month due to Walter seeking funds linked to payments to insurers.

Chelsea valuation: around £5bn

The reported agreement would value the club at roughly £5bn, while allowing Boehly and Walter to exit with a profit. As The Guardian notes, Clearlake already holds 61.5% and therefore has the key contractual position: under the shareholders’ arrangement, no Chelsea shareholder can sell to a third party without partner consent, which gives Clearlake an exclusive option to purchase Boehly and Walter’s stakes.

When the current owners took over around four years ago, the group bought Chelsea for £2.5bn and committed to further spending of £1.75bn on the club. The Guardian also recalls that Walter, Boehly and Swiss billionaire Hansjörg Wyss each held 12.8% after that deal.

The article adds that Walter’s side has signalled progress: a spokesperson for Walter told Bloomberg, as reported by The Guardian, that he is seeking a sale with an agreement close. The spokesperson said the potential transaction would place a premium on Walter’s initial investment and described it as another successful sports investment.

Smoother decisions, stadium focus

Because Clearlake already runs day-to-day operations as majority shareholders, the immediate effect of full control is expected to be felt most in Chelsea’s plans for a new stadium. The Guardian says Eghbali has clashed with Boehly over whether to redevelop Stamford Bridge or explore an alternative site. The same piece links the urgency to the US probe involving Walter over $21bn in loans allegedly not disclosed to state insurance regulators.