How much is chelsea football club worth ? The sale of Chelsea FC by sanctioned Russian billionaire Roman Abramovich to a group led by Todd Boehly, Clearlake Capital, Mark Walter and Hansjoerg Wyss will carry the second-richest price ever paid for a sports team.
Pending regulatory approval, the agreement values the English soccer team at $3.09 billion (using the May 9 exchange rate of £1 to $1.236), second only to the $3.2 billion Joseph Tsai paid for the NBA’s Brooklyn Nets in 2019. (The enterprise values for both deals include the economics of their venues.)
A year ago, Forbes valued Chelsea as the world’s seventh-most-valuable soccer team, worth $3.2 billion (or £2.31 billion, using the April 2, 2021, exchange rate of £1 to $1.383). In other words, the difference between the current purchase price and the Forbes value from 13 months ago in local currency is 8%, slightly less than the rate of inflation in the U.K. over the 12 months through March.
In addition to the $3.09 billion being paid for Chelsea, the incoming owners have committed $2.16 billion in future investments, including the stadiums used by Chelsea’s men’s (Stamford Bridge) and women’s (Kingsmeadow) soccer teams. The $2.16 billion will likely increase the value of Chelsea but should not be part of the “purchase price” because the enterprise value increases only when that investment has been made.
The Chelsea deal is akin to the purchase of the Milwaukee Bucks in 2014, when a group led by Wes Edens and Marc Lasry paid $550 million ($425 million of equity and $125 million of debt) for the NBA team. In addition, they also made a commitment of at least $100 million toward a new arena that was not included in the enterprise value. The Bucks got their new arena and are now worth $1.9 billion.
How Much is Chelsea Worth?
The value of a football club is determined by a number of factors including recent success, historic success, support and current performance.
The Blues failed to qualify for the Champions League ahead of the 2023/24 football season and there is little doubt that this would have negatively impacted upon the club’s worth. However, the Blues remain a very valuable club. They are one of the most successful English clubs in the 21st century and are one of the best supported throughout the world.
In May 2022, Todd Boehly and a consortium of investors acquired Chelsea for a sum of £4.25 billion ($5.25 billion) from previous owner Roman Abramovich. This is the biggest transaction for a sports team in the history of sports.
A Forbes report, published in 2021 listed Chelsea as the world’s seventh most valuable football team, valuing them at £2.31 million or $3.2 billion. Things have not gone according to plan in Boehly’s first season as owner of the club. Not only have the club failed to qualify for next season’s Champions League but they have also finished on the bottom half of the standings despite having spent heavily on new recruits during the last summer transfer window.
The club also made several off-field mistakes which included sacking former manager Thomas Tuchel and replacing him with the untested Graham Potter. Potter arrived at the club having not won a major trophy in his managerial career, though he did do an impressive job at former club Brighton and Hove Albion.
Tuchel had previously guided the club to the 2021 Champions League title. After his sacking by Chelsea, he subsequently went on to lead Bayern Munich to the Bundesliga title. Naturally, many fans were alarmed by Tuchel’s sacking. It came out of nowhere and after it happened, some questioned whether Boehly and co actually knew what they were doing.
The mistakes done this season will likely also impact the club next season. At best, it is likely to take at least another two seasons before the Blues can realistically expect to target the best teams around again. Next season for the club will be about rebuilding rather than challenging the best teams around. The club can realistically expect to finish in the top four next season with a trophy or two being a good bonus.
The best that Chelsea fans can hope for from now on is for the new ownership to learn from their mistakes and hopefully for things to get better as time progresses. While the first season under the new ownership has been disastrous, it has not all been negative.
They have committed $2.16 billion (£1.74 billion) which will be used to upgrade Stamford Bridge which is used by the men’s senior team and Kingsmeadow which is used by the women’s team.
The new ownership can be somewhat forgiven for mistakes that they have done this season. That will not apply next season though. Next season could play a crucial role in the future trajectory of Chelsea as a brand and football club.
Was Chelsea a £4.25bn rip off? Real Madrid top ranking by club value, ahead of Man Utd and Barca
May 26 – Chelsea may have been the biggest deal ever done for the sale of a football club, but the club isn’t the most valuable in Europe, Real Madrid are, according to the latest football club valuation report by Football Benchmark.
Chelsea are ranked seventh overall in the ranking of Europe’s tip 32 clubs, about a billion euros less than highest ranked Real Madrid (€3.184 billion).
So did the British government just rip off Todd Boehly’s Chelsea-buying consortium for a couple of billion? Chelsea rank behind Man Utd and Barcelona (2nd at €2.88bn and 3rd at €2.81bn) as well as behind Liverpool and even big-money newcomers Manchester City – a club that has built its value on money rather than organically on championships and history.
“Boehly backed by Clearlake Capital reached an agreement at a price of GBP 2.5bn (EUR 2.9bn) for the purchase of Chelsea FC’s shares, with a commitment to invest a further GBP 1.8bn (EUR 2.1bn) into the club. Football Benchmark set the Enterprise Value of Chelsea FC as at 1 Jan 2022 in the range between EUR 2.1bn and EUR 2.3bn,” explains the Football Benchmark report.
Even so, the price Boehly paid is still more than 25% above the Football Benchmark valuation, and there is still a further €2.1 billion commitment to the club, even if it isn’t attached to the share value. So why would anyone pay that amount? The answer is most likely in the value and opportunity of the West London real estate that Stamford Bridge sits on.
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