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Last month, Russia invaded Ukraine and, as a result, the world decided to sanction the country and some of its prominent 'oligarchs'. Chelsea owner Roman Abramovich is Russian and has alleged links to Vladimir Putin. Due to that reason, he too was sanctioned.
Roman, sensing the action, had already put Chelsea up for sale. The UK government decided it was right to sanction the football club as well.
The initial restrictions have somewhat eased after more than a month of negotiations. It was a contentious step and, if anything, it has brought the club's fans and players closer to each other.
Chelsea haven’t been affected on the pitch though. That is a testament to the work of Thomas Tuchel, Emma Hayes, and all the players and staff that function under them.
Off the pitch, this past week has seen Raine Group, a US investment bank, trying to identify realistic options for Chelsea. In this post, we will look at the four bidders they identified. We will also explain why only one of them is the best option for Chelsea going forward.
A bidder Chelsea should avoid - Ricketts family
The Ricketts family are the American owners of the Major League Baseball team Chicago Cubs. Their business has investments in film and bison meat and was founded by Joe Ricketts in 1971. The bid is being helmed by his son Tom Ricketts, who is chairman of the Cubs.
The Cubs' last World Series title came in 2016. But since then, they have failed to reach that level. The Ricketts are disliked in Chicago because there has been a lack of investment in the team.
It has been treated as a franchise and a source to make money for the owners. The Ricketts also have the financial backing of Ken Griffin, who runs the hedge fund Citadel and is valued at £20 billion.
All that takes a back seat because of one reason - racism. Joe Ricketts has allegedly referred to Muslims as “his enemy” and has allegedly described Islam as “a cult and not a religion”. The comments were made in 2012 and have resurfaced once again. Chelsea have several Muslim players and racism should not be tolerated.
The Chelsea fans have been vocal on social media and have got #NoToRicketts trending for several days now. The fact that Raine has allowed the Ricketts into the final bidding process has not gone down well with the fans. There could be protests. With the backlash they are likely to receive, one highly doubts whether the Ricketts will be able to own Chelsea.
Crystal Palace owners - David Blitzer and Josh Harris
Next up on the list are Blitzer and Harris, who co-own Crystal Palace. Right there is the first red flag because any purchase of Chelsea would require the two to sell their shares in Palace.
Owning two Premier League teams would be a conflict of interest. Blitzer and Harris have worked for American private equity firms and have teamed up to buy the Philadelphia 76ers and New Jersey Devils in the past.
The two have added Sir Martin Broughton, a former chairman of British Airways and a man who was key in the sale of Liverpool, to FSG. They also added Lord Coe, a former Conservative MP, to help in the political aspect of the deal.
With the club having to do a quick deal, the long process of selling shares does not favor Blitzer and Harris.
The runner-up - Stephen Pagliuca
Stephen Pagliuca is the co-owner of Boston Celtics and has a stake in Serie A team Atalanta. Pagliuca is the co-chair of Bain Capital, an investment firm based in Boston.
The Celtics are one of the better running NBA teams and have managed to stay consistently competitive over his tenure. There has been considerable investment into the team and he has also trusted younger players.
The problem for Pagliuca is that he has shares in a football team, in this case Atalanta. The Italian team is a regular in UEFA competitions and there is always a chance that they will play Chelsea at some point.
It will be a conflict of interest and it would be another drawn-out process of first selling his stake at Atalanta. Pagliuca is a decent option but the club don’t have that much time.
Best option - Consortium led by Todd Boehly
Todd Boehly is an American businessman and CEO of Eldridge Industries. In 2012, as part of Guggenheim Partners, he led a group that bought the Los Angeles Dodgers for a record $2.15 billion.
It was a similar auction to the one coming up with Chelsea and Boehly managed to win. The Dodgers are one of the most successful franchises in the MLB since the consortium bought them.
Boehly has a similar consortium in mind for The Blues. 86-year-old Swiss billionaire Hansjorg Wyss and British lawyer Jonathan Goldstein have also got involved. Clearlake capital has also joined in to provide substantial investment.
They have also managed to get on board Danny Finkelstein, a journalist, and long-time Chelsea fan. Lastly, there is Barbara Charone, another fan, as non-executive director.
It is a well-balanced and thought-out consortium. Boehly has stated that “winning creates value” and one of their goals is to redevelop Stamford Bridge. It is a tough task but there are smart solutions that can be found.
Data driven owners, and a hunger to win but not break the bank. No real controversy either. No billionaire is clean but Boehly and co. seem the least problematic of the lot.
It’s fair to say that Boehly is the favorite amongst the fanbase. The news is that Raine will now allow the shortlisted bidders to approach the club and talk to the likes of Marina, Bruce Buck, etc. They may even talk to Thomas Tuchel.
A quick sale is needed and the quickest option also happens to be the best option. A sale to Team Boehly should be pushed through and a deal done by the end of April.
The Abramovich era brought great success and the club are well-established now. It also had its cons though. Chelsea are now in a position to select a more sustainable future. One where they don’t have to splash the cash and one where Tuchel can stay long term and build for several seasons.
It’s been a tough month for everyone at the club but there is light at the end of the tunnel.
