Clearlake Capital nears deal to buy out Todd Boehly and Mark Walter in £5bn Chelsea takeover

Clearlake Capital is closing in on a deal to buy out Todd Boehly and Mark Walter from Chelsea. The agreement values the Premier League club at around £5bn and would allow both investors to walk away with a profit on their original stake, giving Clearlake full control of the London side.

• Clearlake Capital is finalising the purchase of Todd Boehly and Mark Walter's shares.
• The deal values Chelsea at roughly £5bn.
• Boehly and Walter would make a profit on the investment they made four years ago.
• Negotiations accelerated after Walter needed cash to pay insurers amid a US tax fraud investigation.
• The agreement would ease internal tension and speed up decision-making at the club.

A £5bn agreement two years in the making

On-off conversations between the two ownership groups have been running for the last two years. They took on fresh urgency last month when Mark Walter sought to raise money to pay insurers following a US federal investigation over alleged tax fraud.

A spokesperson for Walter confirmed to Bloomberg that a sale is close. The statement said the potential transaction values his Chelsea stake at a premium to his initial investment and described it as another successful sports investment for the American businessman. The spokesperson also said Walter did not initiate the proposed sale and that he intends to make future sports-related investments.

This potential transaction values Mark Walter's stake in Chelsea Football Club at a premium to his initial investment and is another successful sports investment for him.

How Chelsea's ownership has been split since 2022

Todd Boehly, Mark Walter and Swiss billionaire Hansjörg Wyss each own 12.8% of Chelsea. The stakes came from the £2.5bn purchase of the club from Roman Abramovich four years ago, a deal that included a commitment to invest a further £1.75bn.

Under the terms of the ownership agreement, no shareholder can sell to a third party without the consent of the others. That gives Clearlake, whose investment is managed by Behdad Eghbali and José E. Feliciano, an exclusive option to buy Boehly and Walter's shares. Wyss's position remains unconfirmed.

Why Behdad Eghbali wants full control of Chelsea

Clearlake already runs the day-to-day operation at Chelsea with a 61.5% stake, with Eghbali in charge of management. Under the agreement, the fund was due to appoint its own chairman to replace Boehly next year. Taking complete control would remove internal friction and make decision-making smoother.

Stamford Bridge redevelopment becomes the first big test

The most immediate effect of the ownership change is likely to be felt in Chelsea's stadium plans. Eghbali and Boehly have clashed over whether the club should redevelop Stamford Bridge or move to an alternative site in London. With Boehly and Walter gone, the project could move forward with a clearer direction.

Walter's US investigation speeds up the sale

Walter is being investigated by the US Department of Justice over $21bn in loans that were allegedly not disclosed to state insurance regulators. That situation led to the sudden sale of assets to pay down some of the debt.

Last month, the American investor sold his 85% stake in the Los Angeles Lakers to Josh Kushner and Bob Iger in a deal that valued the NBA franchise at about £9bn. After that sale, his holding company TWG Global said it was not looking to sell its sports assets at fire-sale prices.

Representatives for Boehly and Clearlake declined to comment on the negotiations.

Chelsea ownership change: key questions answered