The Russian oligarch, sanctioned by the UK government because of its ties with the Kremlin, put Chelsea on the bloc last month. The auction has attracted a slew of bidders despite the loss, many of them Americans who already own sports franchises at home.
The bidders, according to people familiar with the matter, include a group led by Los Angeles Dodgers investor Todd Boehley; Chicago Cubs-owner Ricketts family, who are joined by hedge-fund billionaire, Ken Griffin; Stephen Pagluka, co-owner of the Boston Celtics and co-president of private-equity firm Bain Capital; and Philadelphia 76ers co-owners and private-equity veterans Josh Harris and David Blitzer.
Some said Chelsea had attracted bids worth around $3 billion. At that stage, the sale could be the largest sports-team transaction ever, according to data from DeLogic on publicly announced deals.
It may not hold the title for long. The sale of the Denver Broncos to the National Football League is expected to eclipse all others. According to Dealogic, billionaire hedge-fund manager Steven A. The New York Mets’ 2020 acquisition of Major League Baseball by Cohen features the biggest selling price ever for a sports team at $2.4 billion.
A deal for Chelsea is expected by the end of April, according to some people familiar with the matter.
Some American investors have a keen interest in the Premier League. Fenway Sports Group, or FSG, owns the Liverpool soccer team. The Florida-based Glazer family controls Manchester United, which is listed on the New York Stock Exchange. Arsenal FC was acquired outright by Los Angeles Rams owner Stan Kroenke in 2018. Fortress Investment co-founder Wes Edens, along with Egyptian billionaire Nassef Saviris, heads Aston Villa FC.
This interest underscores the growing popularity of the Premier League among American audiences. Comcast Corp. NBCUniversal-owned NBCUniversal last year agreed to pay around $2.7 billion to extend the broadcasting rights of the Premier League by six years. That’s close to triple the $1 billion value of the broadcaster’s current six-year deal, which expires next month.
America’s interest in the Premier League comes at a time when the war in Ukraine reduces demand from Russian and Chinese investors and because of China’s earlier steps to curb outbound investments.
Mr Abramovich bought Chelsea in 2003 for around £140 million, which is roughly $184 million at current exchange rates.
According to filings with the UK Corporate Registry, over the nearly 20 years, the team has made a total net loss of £894 million, the equivalent of $1.2 billion. Also, Mr Abramovich has given a total of $2 billion in loans to financially support the club.
Mr Abramovich, who is not involved in the sale process, said he would not receive any proceeds from the sale of the team and would be given up on loans given to him by the club.
Causing huge losses over the years: Mr. Abramovich spent heavily to attract and develop top players. He transformed the club into a consistent performer competing for the title. It won last year’s Champions League, the top tournament among European clubs.
Alec Scheiner, partner at Redbird Capital Partners, said Chelsea enjoys widespread brand recognition and is based in London, a global hub, explaining the high level of buyer interest from US investors who already own the teams. Huh. The investment firm holds a stake in FSG, which owns the Boston Red Sox and Pittsburgh Penguins.
The trick for any new buyer will be to navigate the costly redevelopment of Chelsea’s charming but pristine Stamford Bridge stadium in the heart of tony West London. The current facility is a little over 40,000, placing it ninth among Premier League venues.
Chelsea bidders are betting on developing new sources of revenue. “Otherwise you’re just buying the team as a vanity project,” said Kieran Maguire of the University of Liverpool.
Chelsea first presented a renovation plan in 2015 to increase the stadium’s seating capacity by about 45% to 60,000. Mr Abramovich scrapped plans to spend more than $1 billion on the project in 2018 after the UK halted his visa renewal.
This story has been published without modification to the text from a wire agency feed
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