According to the Financial Times, Chelsea have secured an investment of approximately $500 million from Ares Management, a prominent US alternative asset manager. This injection is expected to be channelled into the club’s stadium improvements and to increase their stakes in other football teams.
While the consortium comprising Clearlake Capital and Los Angeles Dodgers co-owner Todd Boehly have heavily invested in new players this summer, Chelsea’s on-field results have been less than commendable. Still the new owners, including Clearlake’s co-founder José Feliciano, are committed to further their investment and translate heavy spending into silverware with help of the Blues’ intrinsic value in the market.
“We have bought an asset that is very coveted by many other potential buyers.
“Ultimately, we are extremely aligned with that supporter and fan base because the best way to make our club more valuable is to win.”
-José Feliciano; Source: Financial Times
In a broader context, Ares Management has already raised $3.7 billion last year for investments in sports franchises, leagues, and media outlets. They have themselves injected the $500m via ‘preferred equity deal’, as per the FT’s report.
Given Chelsea have yet to sign a new shirt sponsorship deal and plan on undertaking massive investments at Stamford Bridge, as well as BlueCo’s ambitions to expand the multl-club structure well beyond France and RC Strasbourg, successful rounds of investment are more than welcome. Just as long as Ares and co. don’t start using our assets as leverage in credit and capital markets ailing from high interest rates.