OFFICIAL- Chelsea handover: The Todd Boehly consortium enters into an agreement to replace Roman Abramovich
On March 2, Roman Abramovich announced that Chelsea was for sale; the LA Dodgers part-owner beat out Sir Jim Ratcliffe, who bid £4.25 billion, and two other consortiums to win the battle for Chelsea. The UK government must issue a new license before the takeover can take place.
Todd Boehly's consortium has agreed to buy Chelsea from Roman Abramovich.
Before the proposed deal can be finalized, it must be approved by the UK government and the Premier League.
The consortium led by the LA Dodgers' part-owner, with backing from Clearlake Capital, a US investment firm, defeated late competition from £4.25 billion bidder Sir Jim Ratcliffe and other consortiums led by Stephen Pagliuca and Sir Martin Broughton to become the Premier League club's new owners.
Chelsea had until May 31 to find a new bidder because the club's operating license with the UK government expired on that date. With the Raine Group, who was hired by Abramovich to oversee the sale of the club, having selected its preferred bidder, the government can issue a separate licence to allow the Premier League club to be sold.
The Premier League will meet on June 8 to form the new season, by which time Chelsea would need to have a license to compete in the following season.
According to Sky Sports News, Boehly's consortium was chosen as the preferred group to buy Chelsea, despite a late £4.25 billion bid from Britain's richest man Ratcliffe for the west London club, which was rejected outright.
The Pagliuca consortium was informed at the end of last month that it had been eliminated from consideration for the Raine Group's preferred bidder position. The Broughton consortium, led by former Liverpool and British Airways chairman Sir Martin and including billionaire Crystal Palace shareholders Dave Blitzer and Josh Harris, was still in the race.
Lewis Hamilton is one of the investors who backed Broughton's bid to buy Chelsea, and he is said to have put up £10 million. Serena Williams, the tennis legend, was also a supporter of the Broughton consortium.
The Ricketts family, which owns the Chicago Cubs, and Citadel hedge fund billionaire Ken Griffin, along with US investment bank Lazard, were in the final four but withdrew their offer in March. The plans fell through because the consortium members couldn't agree on the final structure of the deal.
Sir Jim Ratcliffe made a late £4.25 billion bid for Chelsea.
Chelsea is expected to have new owners by the end of this month, nearly three months after Russian ownership Abramovich, who has been in charge of Stamford Bridge for 19 years, put the club up for sale for the first time on March 2.
On March 10, the UK government sanctioned the 55-year-old, claiming to have established links between the Russian-Israeli billionaire and Vladimir Putin.
This week, departing Chelsea owner Abramovich denied that he wants his £1.5 billion loan to the Blues repaid and pledged to donate the proceeds of the club's sale to charity.
The Russian owner stated that he would not seek repayment of his loans to Chelsea and that the proceeds from the club's sale would go to a charitable foundation for "all the victims of the war in Ukraine."
Kaveh Solhekol deconstructs Roman Abramovich's statement.
A spokesperson for Abramovich said in a statement released by Abramovich and Chelsea on Thursday evening, "Firstly, Mr Abramovich's intentions in relation to gifting the proceeds of the Chelsea sale to charity have not changed." Mr. Abramovich's team has identified senior representatives from UN bodies and large global charitable organizations who have been tasked with forming a Foundation and developing a plan for its activities since the initial announcement. The lead independent expert has met with government representatives to present the structure and preliminary plans.
Roman Abramovich celebrates his team's victory in the 2021 Champions League final.
"Mr Abramovich was not involved in this work, which was overseen independently by experts with years of experience working in humanitarian organizations." Second, Mr. Abramovich has not requested that any loan be repaid to him; such claims are completely false, as are claims that Mr. Abramovich increased the price of the Club at the last minute. As part of Mr. Abramovich's goal of finding a good custodian for Chelsea FC, he has encouraged each bidder throughout this process to commit to investing in the Club - including in the Academy, Women's team, necessary stadium redevelopment, and maintaining the work of the Chelsea Foundation."
The UK government will not allow the sale to proceed unless it is absolutely certain Abramovich will not receive any of the proceeds.
At Stamford Bridge, there is a banner honoring Roman Abramovich.
"Following sanctions and other restrictions imposed on Mr Abramovich by the UK since announcing that the Club would be sold," the spokesperson continued, "the loan has also become subject to EU sanctions, requiring additional approvals."
This means the funds will be frozen and subject to a legal procedure overseen by authorities. These funds remain designated for the Foundation. The government is aware of the restrictions as well as the legal ramifications. To be clear, Mr. Abramovich has no access or control over these funds and will have no access or control over them after the sale. Despite the fact that circumstances have changed since his initial announcement, he remains committed to finding a suitable caretaker for Chelsea FC and making sure the proceeds go to good causes."
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