Chelsea poised for £400m boost from US-based investment firm
Chelsea are in line to receive a £400million boost from US-based investment firm Ares Management as part of expansion plans that have alerted John Terry to explore a bid to buy a stake in the club
Telegraph Sport reported on Tuesday that Chelsea are in talks with a number of prospective investors and one of those, Ares Management, are expected to inject $500 million (£400 million) as part of a preferred equity deal.
Former Chelsea captain Terry is part of a group that is exploring a bid to buy a stake in the club with other firms and individuals also interested in buying shares, and co-controlling owner Todd Boehly open to investment offers.
The cash injection from Ares will help Chelsea with expansion projects such as the new stadium, which is likely to cost upwards of £1.5billion, the redevelopment of Cobham and the club’s multi-club plans.
Given the scale of Chelsea’s plans, investment could be considered from a variety of different sources and a preferred equity deal would see Ares paid a percentage return on their investment.
Ares has invested in a number of football clubs including Atletico Madrid and Eagle Football, the group that bought French club Lyon last year. Lyon owner John Textor is understood to share a close relationship with Chelsea’s co-controlling owner Behdad Eghbali.
Last September, Ares announced it had raised almost £3 billion to invest in sports leagues, teams, and media and entertainment companies.
Boehly and Clearlake Capital bought Chelsea for £2.5 billion, with the commitment of a further £1.75 billion, last year and have already spent over £1 billion on new players.
But club sources insist that any new investment will not be used to cover money already spent, but will instead go towards big-ticket growth projects.
Chelsea are analysing whether or not to redevelop Stamford Bridge on its current site or attempt to move the club to a new home, while the owners also want to add a Portuguese club to their multi-club portfolio.
