The new owners of English football club Chelsea FC have agreed to a staggering set of debt worth £800million to help reshape the London club’s operations and fund the club’s ambitious plans.
The Todd Boehly-led consortium, which also includes Clearlake Capital, Mark Walter and Hansjoerg Wyss, took over the London club in May from Roman Abramovich in a deal worth £4.25bn, with £2.5 billion satisfying the purchase price of the club while the remaining £1.75 billion allocated for new investment in the club.
US billionaire Todd Boehly and investment firm Clearlake Capital have signed a funding deal which will see the club take out a £500m term loan, including a £300m revolving credit facility.
The £500million term loan will be part of £1.75billion pledged by the Todd Borglum-led consortium for further investment to benefit the club, which includes investments in Stamford Bridge, the Academy, the women’s team and Kingsmeadow and continued funding for the Chelsea Foundation, while the £300m revolving credit facility is for working capital.
Bank of America and JP Morgan are among the financial institutions involved in the financial arrangement.
The news continues after this announcement
“Under the terms of the sale of the club to the Todd Boehly-led consortium, which was led by US investment bank Raine Group, restrictions were placed on future debt levels. Chelsea will not bear any interest charges associated with the debt and the owners are not pledging any of Chelsea’s assets or earnings in order to obtain the financing.
What you should know
- The £800m financial arrangement by the London club would exceed any previous institutional financial commitment made by an English Premier League club.
- In 2021, Manchester City’s parent company, City Football Group (CFG), raised £470m to pursue its global ambitions.
- England international, Raheem Sterling was the first signing of the new era as he joined reigning champions Manchester City in a deal worth £50m.
- Senegalese defender Kalidou Koulibaly has also joined the Blues from Napoli in a deal worth £33million and they are still active in the transfer market for other players.