Monday 30 May 2022
Chelsea statement following takeover completion.
Chelsea
Statement in full.
Roman
Abramovich has completed the sale of Chelsea Football Club and related
companies to an investment group led by Todd Boehly and Clearlake Capital.
This
sale process commenced on the 2nd of March, when Mr. Abramovich announced his intention
to sell the Club after 19 successful years of ownership. In selling the Club,
Mr. Abramovich stipulated that the new owner must be a good steward of the
Club, the net proceeds of the sale must be donated to charity, and that he
would not seek the repayment of loans made to affiliates of the Club.
Following
this announcement, the Board of Directors and senior staff at the Club
immediately commenced work on the sale transaction. Raine, a global merchant
bank chosen by the owner to run the sale process, has significant expertise and
experience advising premium sports clubs on mergers and acquisitions and
advised the owner and the Club in the process.
SANCTIONS
On
10 March, Mr. Abramovich was sanctioned by the UK Government. Under sanctions,
the Club operated within the confines and constraints of the restrictive
General Licence granted by the UK Government, while doing its best to maintain
the ordinary course of business. At all times throughout the process the Club’s
objective was to support our men’s, women’s and academy teams and allow them to
operate with the absolute minimum level of inconvenience and distraction.
These
sanctions also presented unique and unforeseen challenges to the sale process,
but the Board and Raine continued to work on the transaction in accordance with
the owner’s objectives.
PROCESS
The
process was extremely thorough and completed on an accelerated timeline. Many
described the proposed transaction as “unprecedented”, and it was. A
transaction such as this would normally take nine months to a year to complete;
we did it in less than three months.
The
Club received more than 250 enquiries from proposed purchasers, held detailed
discussions with more than 100 individuals and entities, and entered into 32
confidentiality agreements, which allowed for due diligence with respect to
confidential Club information. Ultimately, the Club received 12 credible bids,
resulting in 4 and then 3 final bidders. The Todd Boehly and Clearlake Capital
consortium was chosen as the preferred bidder.
PREFERRED
BIDDER
The
group led by Todd Boehly and Clearlake Capital rose above the other groups
through the strength of the partnership between the group’s component parts,
which includes Mark Walter, co-founder and CEO of Guggenheim Capital; and
Hansjörg Wyss, founder of the Wyss Foundation; Todd and Mark’s participation in
the ownership of several sports franchises with sustained winning traditions,
including the Los Angeles Dodgers, the Los Angeles Lakers, and the Los Angeles
Sparks; a belief by the Board that this group could help the Club resolve
certain current challenges and could assist in creating new opportunities, and
help the Club reach its long-term strategic objectives. We believe the Board
and the Boehly/Clearlake group have a shared vision for the future of Chelsea
Football Club.
STRUCTURE
OF TRANSACTION
In
choosing the right stewards for the Club through this transaction, we agreed
with the new owners that their group would make certain binding financial
commitments, including investments in the Academy and women’s team, the
redevelopment of Stamford Bridge and the Chelsea Foundation.
We
also agreed several further conditions to ensure that the new owners continue
to provide equity funding for future capital and operating expenditures, and
that the Club will not be laden with inappropriate financial indebtedness.
STAKEHOLDERS
AND APPROVALS
Throughout
this process, we have worked very closely with the UK Government, in particular
the Department for Digital, Culture, Media and Sport (DCMS), and HM Treasury,
as well as with the Premier League, The FA and UEFA. In order to complete the
transaction, we needed consents and approvals from all, and in particular from
the UK Government.
We
have been able to obtain all necessary consents, as well as further licences
required in Portugal, Canada and Jersey due to the structure of the previous
ownership
New
joint control owners are committed to growth and building on the tradition of
unparalleled football excellence.
The
consortium led by Todd Boehly, chairman and CEO of Eldridge, and Clearlake
Capital Group, L.P. (together with its affiliates, “Clearlake”), today
announced completion of the ownership transfer of Chelsea Football Club
(“Chelsea FC” or “the Club”). The consortium also includes Hansjörg Wyss,
founder of the Wyss Foundation, and Mark Walter, co-founder and CEO of
Guggenheim Capital. Walter and Boehly are owners of the Los Angeles Dodgers,
the Los Angeles Lakers, and the Los Angeles Sparks. The transaction has
received all necessary approvals from The Government of the United Kingdom, The
Premier League, and other authorities.
Under
the terms of the agreement, Boehly and Clearlake will share joint control and
equal governance of the Club. Boehly will serve as Chairman of the holding
company.
Boehly
and Clearlake are committed to investing in key areas that will extend and
enhance Chelsea’s competitiveness, including the redevelopment of Stamford
Bridge, further investment in the Academy, the Women’s Team, and Kingsmeadow
stadium. The owners will also continue the important work of the Chelsea
Foundation.
“We
are honoured to become the new custodians of Chelsea Football Club,” said
Boehly. “We’re all in – 100% -- every minute of every match. Our vision as
owners is clear: we want to make the fans proud. Along with our commitment to
developing the youth squad and acquiring the best talent, our plan of action is
to invest in the Club for the long-term and build on Chelsea’s remarkable
history of success. I personally want to thank ministers and officials in the
British government, and the Premier League, for all their work in making this
happen.”
Behdad
Eghbali and José E. Feliciano, Clearlake co-founders and managing partners,
said, “We are excited to commit the resources to continue Chelsea’s leading
role in English and global football, and as an engine for football talent
development. We also want to thank the authorities for all their work
throughout the process. As pioneers in sports and media investing, we are
thrilled to partner with Todd and the rest of the consortium to meaningfully
grow the Club as a global platform. Together, we will expand the Club’s
investment across infrastructure, technology, and sports science to support the
incredible Chelsea football and commercial teams – all with the goal of
leveraging this growth to fuel even more on-pitch success.”
The
new ownership group wishes to recognise the dedication and professionalism of
the Department for Digital, Culture, Media and Sport, HM Treasury, and the
Premier League in conducting their reviews of this historic and complex
transaction.
Deutsche
Bank, Goldman Sachs, Moelis & Company LLC, and Robey Warshaw LLP served as
financial advisors to the new ownership group. Latham & Watkins LLP, Paul,
Weiss, Rifkind, Wharton & Garrison LLP, and Sidley Austin LLP served as legal
counsel.
The
Raine Group served as exclusive financial advisor to Fordstam Limited and
Chelsea FC. Northridge Law LLP, Simmons & Simmons LP, and Pillsbury,
Winthrop, Shaw, Pittman LP served as legal counsel.
posted by Radio Jackie News Team @ 7:00 pm