BlueCo’s ownership of Chelsea is still in its infancy. Having pledged £4.25bn as part of their takeover in 2022, the group are not expecting a return on their investment any time soon.
The BlueCo consortium is made up of some of the biggest names in private equity, an industry where investors usually expect a return in about seven years, on average.
But at Chelsea, Behdad Eghbali’s Clearlake Capital, Todd Boehly, Mark Walter, Hansjorg Wyss and most other members of the patchwork ownership group recognise that timeline is simply not realistic.
Three-and-a-half years into their time at Stamford Bridge, BlueCo have appointed their fifth permanent manager in Liam Rosenior, who joins from Strasbourg, Chelsea’s subordinate sister club.
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The revolving door policy with managers is nothing new. 15 different men sat in the big chair during the Roman Abramovich era. But besides that, the club’s strategy under BlueCo is virtually unrecognisable.
Everything, from the dual sporting director model to the treatment of player sales as a fourth revenue stream alongside media, commercial and matchday income, is different now.
The multi-club model is HUGELY controversial
If you were a Strasbourg fan, how would you feel being Chelsea's feeder club?
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The multi-club approach is one of the more controversial aspects of the owners’ private equity approach to running a football club.
Strasbourg fans were up in arms about being treated as a feeder club even before the Rosenior switch, which has now cleared the formality of being scrutinised under the Premier League’s Associated Party Transaction (APT) Rules.
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Former Bournemouth and Wolves boss Gary O’Neil is now BlueCo’s new man in Alsace, where the supporters protesting Eghbali and his colleagues’ ownership are unlikely to have much joy any time soon.
“Strasbourg are seen as a tributary to Chelsea and it is very much a feeder club,” Kieran Maguire, football finance lecturer at the University of Liverpool and host of the Price of Football podcast tells The Chelsea Chronicle.
“You only have to look at some of the more baffling transactions, such as Julio Enciso going from Brighton to Strasbourg with a view to going to Chelsea eventually. Strasbourg is being used as a holding area to see if footballers who have potential can develop.
Diagram illustrating the ownership of Chelsea, split between factions led by Todd Boehly and Behdad Eghbali's Clearlake Capital
Chelsea ownership diagram Credit: Adam Williams/GRV Media/The Chelsea Chronicle
“Chelsea get all of the upside in acquiring personnel, including Liam Rosenior, who I think very highly of.
“There is the Brexit element as well. It allows the multi-club organisation to acquire and park talent within the EU framework with a view to moving the talent across to the parent club once the player turns 18. Chelsea have certainly got a young squad. The players that they are sending to Strasbourg typically have fit that bill.
What is BlueCo’s long-term plan at Stamford Bridge?
And how do Strasbourg fit into BlueCo’s long-term masterplan? And what exactly is the business case for private equity’s involvement in football?
“I don’t think they actually have a masterplan – but they think they do. Trying to work out the ultimate objective is very difficult.
“Clearlake have a hedge fund mentality. They aren’t interested in football. Their focus is on making a return. They are only going to make a profit when they exit.
Chelsea’s stance on January transfers under Liam Rosenior is clear 🗣️
What signings do you want to see?
Chelsea's January transfer window stance
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“They could, however, make a profit in the transfer market in the meantime by buying young, getting a few years of experience and then selling high. Although, if you look at the prices they have paid, they do pay top dollar. Is there enough upside? The jury is out.
“Chelsea were good at sale pres-Clearlake and they have got good prices for some of the players they had on the books.”
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