May 07, (THEWILL) – Following a week of negotiations, Todd Boehly has reportedly signed a purchase agreement to buy Chelsea for up to £4 billion in a transaction that will be submitted to the government for approval.
Only two more hurdles remain for Boehly and his consortium to take over the club from Roman Abramovich, with the American requiring approval from the UK Government and the English Premier League.
At the conclusion of an owners’ and directors’ test, the League is anticipated to approve the Boehly buyout, but the Government must first issue a new licence for the sale of Chelsea.
Boehly is on track to complete his takeover by the end of the month, with just over three weeks left on the club’s current operating licence, which expires on May 31.
While the transaction is not yet complete, the signing of the purchase agreement is considered the most important step in the process thus far. It is essentially a commitment that transfers the seller’s shares to the buyer with a deadline for completion.
With this “most significant step” completed, the process can go forward with the Premier League approvals and Government licence applications and amendments. These are unlikely to present any additional challenges or issues.
The agreement includes some “anti Glazer” stipulations aimed at ensuring that, beyond mere pledges, the primary priority of the new ownership group and their majority investors, Clearlake Capital in particular, would be the club’s improvement and competitiveness rather than their financial margin.
About the Author
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
