Reports from the United States have revealed that Clearlake Capital cofounder Behdad Eghbali has been spending too much time on the Chelsea Football Club project in recent months. This has caused some concern among the private equity firm’s biggest investors. It has also made limited partners, some of whom manage more than $30 billion in assets, even more worried about how Clearlake’s leadership is balancing its sports holdings with the daily needs of the core business.
The 49-year-old Iranian-American billionaire co-led the Clearlake-backed group that bought Chelsea for £2.5 billion ($3.37 billion) in 2022, taking the club away from Roman Abramovich, a Russian oligarch who was under sanctions. However, people are wondering why he is getting more involved now, when the company is still trying to raise money for its newest flagship fund. Adding to the worry, co-founder José E. Feliciano is said to be close to making a record $3.9 billion personal deal with MLB’s San Diego Padres with his wife Kwanza Jones.
A high-level employee at a large state pension fund that invests in several Clearlake funds gave a more sympathetic explanation, saying that the focus made sense because Chelsea clearly needed to turn things around. However, Clearlake has strongly defended itself against the criticism in an official statement:
“[The co-founders] remain fully engaged in leading Clearlake, serving on the investment committee.
At this important point, though, the optics around the firm are still very strange. The troubled $7.1 billion sixth fund, which started in 2020, has long made investors uneasy. At least one public pension fund reportedly said that the Padres development was the main reason it chose not to invest in Clearlake’s latest fundraise.
Chelsea’s Champions League Hopes Hang By A Thread
It’s easier to understand why Eghbali is so focused on Stamford Bridge when you look at the Premier League table. Chelsea are in sixth place with 48 points, seven behind fifth-place Liverpool, who currently hold the last automatic Champions League spot. Aston Villa’s run in the Europa League gives them a chance, but relying on someone else to help them qualify for the elite level isn’t exactly the kind of investment that stands out.
Off the pitch, the BlueCo era is still getting a lot of attention. Since 2024, there have been reports of problems between Eghbali and co-owner Todd Boehly. Chelsea still have a lot of important games left to play, including a trip to Anfield on May 9 that will likely decide the club’s future in Europe and the story around Clearlake’s management. In the next few weeks, Eghbali will find out if his investment in Stamford Bridge is a long-term strength or a costly liability.