Chelsea chairman and co-owner Todd Boehly has joined forces with Mark Walter, his fellow shareholder at Stamford Bridge, for a sports takeover deal that obliterates the previous record.
Boehly is the founder of private equity house Eldridge Industries, a diversified fund with stakes in business ranging from the production company A24 and American pizza restaurant chain Chuck E. Cheese to Security Benefit Life Insurance and real estate firm Cain International.
It is in sports, however, where the Virginia-born billionaire has become, if not a household name like Roman Abramovich, then at least one with a huge cachet in the Premier League and beyond.
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Boehly owns around 13 per cent of Chelsea and sister club Strasbourg. In the summer of 2024, he was the public face of the BlueCo consortium of dozens of investors which paid a record £2.5bn to buy the West London club, with another £1.75bn pledged for future projects.
Chelsea owner Todd Boehly in the directors' box at Stamford Bridge
Photo by Robin Jones/Getty Images
Since the takeover, he and his deal partners Clearlake Capital have adopted a ‘move fast and break things’ management style.
Billions have been blasted on transfers and even more committed in player wages. The jury is still out on whether this high-tariff recruitment strategy – focused on young talent, long-term contracts and relentless squad churn – will bear fruit.
And while some jiggery-pokery from their legal department has seen them escape the clutches of the Premier League’s PSR enforcers, Chelsea have breached UEFA’s equivalent financial rules and agreed a three-year compliance plan with European football’s governing body.
Boehly’s direct influence at Stamford Bridge has waxed and waned in the 18 months since his arrival. Some sources tell TBR Football that it is Clearlake’s Behdad Eghbali that is the real all-seeing eye at Chelsea, while others maintain that Boehly will remain the chief decision maker until he steps down as chairman in 2027.
What is clear, however, is that there are some fundamental differences in the ownership factions’ vision for the club, especially when it comes to the stadium.
Diagram showing the Chelsea ownership structure
Chelsea ownership diagram Credit: Adam Williams/TBR Football/GRV Media
Boehly and his allies in the boardroom see a future away from the Bridge, with a new stadium at Earl’s Court the ideal destination. Eghbali and his Clearlake colleagues meanwhile want to stay in SW6 and expand capacity.
But as egos collide in the corridors of power, Boehly can rely on the backing of Mark Walter and Hansjorg Wyss, with whom he has business alliances stretching back decades.
Wyss is a long-standing investor in Eldridge and collaborated with Boehly during the latter’s time with Guggenheim Partners. Walter meanwhile has partnered with Boehly on umpteen projects – most notably their investment in NBA franchise the Los Angeles Lakers and Major League Baseball’s LA Dodgers.
Incidentally, the Dodgers are currently fighting to retain their World Series title, edging ahead of Toronto Blue Jays 2-1 in last night’s third game of the seven-game series.
And in the latest news, Front Office Sports have revealed that Walter has brought Boehly with him in his pending full takeover of the Lakers, which values the team at a world-record £7.5bn.
Walter and Boehly will increase their stake in the Lakers from 27 per cent to 85 per cent. The deal, it is said, could be completed this week after being given the go-ahead in June.
Chelsea players greet Mark Walter and Todd Boehly after Club World Cup triumph
Photo by Darren Walsh/Chelsea FC via Getty Images
Speaking exclusively to TBR Football, Liverpool University football finance lecturer and Price of Football author Kieran Maguire said: “The Lakers takeover and price shows the benefit of a franchise entertainment product that has been developed for maximising revenues and profits.
“A sealed league with no relegation risk guarantees income, little chance of talent leakage due to broadcast deals that blow other leagues out of the water, advertising opportunities every few minutes and the world’s largest economy all help.
“Todd Boehly’s experience at leveraging sporting talent in multiple markets makes his recruitment attractive to Mark Walter.”
The Lakers’ revenue in the last financial year was around £415m, compared to £469m at Chelsea. The turnover gap between the two will widen this season as the Blues cash in on a lucrative Champions League campaign, which Enzo Maresca and his side will continue away at Qarabag next Wednesday.
However, where the Lakers have the upper hand – and by an order of magnitude – is operating income, which is a byword for a company’s underlying profit.
The Lakers turn a profit every year – without exception. Last time around, they were around £150m up. Chelsea? They are running annual operating losses of around £200m.
Chart depicting Chelsea's operating losses
Chelsea operating loss chart Credit: Adam Williams/TBR Football/GRV Media
The question is this: how do BlueCo plan to make the club profitable and, eventually, generate a return on their multi-billion pound investment?
The wisdom of spending the best part of two-and-a-half seasons without a front-of-shirt sponsor has been questioned. But even with increased commercial income, the problem remains that, as revenue rises, so do player wages, transfer fees and agents’ compensation.
Earlier this year, Boehly told Bloomberg: “When you have that kind of IP [intellectual property], you’re only limited by your creativity.” But while the Chelsea badge might sell sponsorships and replica kits, that’s only valuable if they eventually earn more than they spend year on year.
Without changes to Profit and Sustainability Rules – making them tighter, not looser – it’s difficult to see how Chelsea and their peers can simultaneously compete for titles and turn a profit.
No one besides players and agents makes any money from football, and costs are being borne by fans as well as owners. Yes, BlueCo could try and sell the club for a profit, but who is going to spend £5bn, £6bn or £7bn on an asset that loses money and shows no signs of reversing that trend?
Maybe there is a market in the short term. But without structural change, that won’t last forever. At the moment – unlike the NBA franchise valuations – Premier League club valuations looks like a bubble.
And bubbles burst.