Walter Are Considering Selling Their Stakes in the Premier League Club to Majority Owner Clearlake Capital, According to Reports on Monday

Clearlake, whose investment is managed by Behdad Eghbali and José E Feliciano, already owns more than 60% of Chelsea. Under an unusual arrangement agreed when buying the club from Roman Abramovich four years ago, they share operational control with a consortium led by Boehly, who along with Walter and Hansjörg Wyss each own about 13%. The two ownership groups have been locked in a stalemate for almost two years after reports first emerged that they were seeking to buy each other out following a disagreement over strategy, particularly regarding plans for a new stadium.

Discussions over a potential deal, which would value the club at more than £5bn, have resumed over the past few weeks, as first reported by the Financial Times, as Walter seeks to raise funds to pay off insurers following a US federal investigation over alleged tax fraud. Walter is being investigated by the US Department of Justice over $21bn in loans allegedly not disclosed to state insurance regulators, leading to the sudden sale of assets to pay down some of the loans. Last week he sold the Los Angeles Lakers to Josh Kushner and Bob Iger for $12.5bn just a year after buying the NBA franchise for $10bn, fueling speculation that the 66-year-old may also seek to exit Chelsea.

Boehly and Walter are close friends and longstanding business partners, having previously invested together in the LA Dodgers Major League Baseball team and the LA Sparks WNBA franchise. Together with Wyss, they control 38% of Chelsea through Blueco 22 Holdings, though it is unclear whether the Swiss billionaire is also willing to sell. Under the terms of their £2.5bn purchase from Abramovich after he was sanctioned by the UK government following Russia's invasion of Ukraine, none of Chelsea's shareholders can sell to a third party without partner consent.

An external sale is therefore unlikely, putting Clearlake in a strong position to gain complete control, although Boehly and Walter will demand a significant premium on the £325m they paid for their shares four years ago. A sale would leave Clearlake with more than 86% of Chelsea's shares and effective control of the club, including the bid to build a new stadium at Stamford Bridge. Walter has been a silent partner at Chelsea, but Boehly was the public face following the 2022 takeover and acted as interim sporting director during that summer's transfer window, leading purchases such as Raheem Sterling and Marc Cucurella.

Boehly stepped back after 12 months as Eghbali took more operational control on behalf of Clearlake but has often been blamed by fans for the side's underperformance. He was due to stand down as chair at season's end under the ownership agreement. Representatives of Clearlake, Boehly and Chelsea were approached for comment.