When Todd Boehly and Clearlake Capital combined to spend an initial £2.5bn on Chelsea Football Club, everyone involved knew that those funds alone weren’t going to cover their investment. The deal to buy the club included a commitment to spending a further £1.75bn on the stadium, academy set up, women’s team and more.
As Boehly now continues to spend money on the club in a different way, investing this time in players, currently Kalidou Kouliably and Raheem Sterling for the men’s team, the new ownership group are already racking up an initial debt of £800m, over half of Roman Abramovich’s own £1.5bn debt which he wavered off when he sold the club.
This debt is being used to restructure the club with not only transfers, but longer-term movements to develop the Stamford Bridge stadium and also create a new business model that has already started with the appointment of Tom Glick as president of business.
The debt, which is reported in the Financial Times, will have multiple purposes beyond spending money for new players. As well as continuously looking to revamp Stamford Bridge there will also be a new working system, including the appointment of a director of football, with Boehly acting in an unprecedented co-owner/interim director of football role this summer.
After the departures of key senior club figures Marina Granovskaia and Bruce Buck, the boardroom is emptier than normal for the busy summer period, but it is something Boehly will be keen to sort out once Thomas Tuchel’s squad for the new season has been assembled.
As for the record £800m finance, income is reportedly being structured as £300m of revolving financial credit, meaning it is freely accessible to be taken out, used, repaid and then withdrawn again. The other £500m will be in the form of a term loan which has a specified repayment schedule and a fixed or floating interest rate.
This act has put quick action to Boehly and Behdad Eghbali’s plans to invest heavily in the club as a whole, in order to create a sustainable long-term structure within the club.
By appointing Tom Glick in his new role as ‘president of business’ which has the goal to “enhance performance across the board, on behalf of everyone we serve” and “improve Chelsea FC’s key infrastructure, expand the Club’s products and reputation, and find exciting new ways for our loyal supporters to engage with their favourite players,” Boehly has already taken the first steps in his plan.
The club also want to “elevate our significant global standing and help lead our commitment to strengthen the Club through investments in squad additions, infrastructure, technology, the youth academy, and the Women’s Team,” which combines with the original statement put out by the new owners in May.
As Chelsea enter the new global markets, which coincides well with their ongoing tour of America, Boehly is already acting on the ambitions to “developing the youth squad and acquiring the best talent, our plan of action is to invest in the Club for the long-term and build on Chelsea’s remarkable history of success.”
The American is part of a new wave of sports ownership that had previously worried Blues fans regarding their goals to make a profit from the club, however, Boehly’s immediate action at the club have not only put those fears to bed, but his willingness to embrace early and sizeable debt with the club has also created a positive early feeling at the club.
Source: Football London
