Ratcliffe told to leave as Boehly ups stake and remains on track to buy Chelsea

Todd Boehly’s consortium is still on course to buy Chelsea, according to basically all the latest reports on the situation, even as the government tries to figure out what to do with the £1.5bn loan (and its tax implications) that Roman Abramovich wants . cancel, but can’t (which he seems to believe, since he’s sanctioned) or doesn’t want to (which the government accuses him of trying to do).

The fact that Fordstam technically owes that debt to a company (another Abramovich) that is not based in England (Camberley International) but is also under sanctions (from Jersey) also complicates matters, and while the solutions range from new owners take on debt to equity to whatever else beyond my understanding has been proposed, at the end of the day, if they don’t have to take on it, it’s not a concern for the new owners. The issues of frozen assets, loans, debts, you name it, are issues between Abramovich and the UK government, and they don’t necessarily have to affect the actual sale of the club, as profits will be frozen anyway, regardless of whether Re ultimately intended to reach charities, grassroots football, government accounts, or Roman’s back pocket.

In that sense, the Telegraph reports today that the Government is open to the idea of ​​putting a “backstop” on this issue, to focus on the actual sale of the club and then resolve the rest between them and Abramovich.

This sounds good in theory, as long as it satisfies any concerns from the end of Boehly’s offer and doesn’t burden the club with the debt itself, and so on.

On a related note, Sky News reports that the composition of Boehly’s offer has changed in recent days following the request for the additional €500m upfront, with Clearlake Capital’s share reduced from two-thirds to just 60%. , and all minority investors make up 40%. That would seem to suggest the overall offer is now around £5b (assuming the previous £4.5b, with Clearlake putting up £3b, which would now make up 60% of the offer, up from 66%). Either way, control is still set to be split 50-50 between the two main stakeholders.

Meanwhile, a man who underbid Boehly, with no plan and even fewer concrete ideas, Sir Jim “just vibes” Ratcliffe has been told by the Raine Group to walk away, but is apparently ready to rebid if for For some reason, Boehly’s bid fails, though the other two consortiums would then be asked to back down first.

Ratcliffe’s team have confirmed to the Telegraph that Raine has told them to “forget it”, that they make an offer on a whim, that they want Raine to do extra work for them, that they have no plans in place for the club or the stadium, no they haven’t done any of the work required by the process, that they don’t really want to be involved in running the club, that they have no idea what would actually happen with OGC Nice… but they’re here for the “British deal” vibes, man , even though Ratcliffe left the country to pay taxes in Monaco.

“We have received an email to say ‘forget it, you are not in the process.’ That was from Raine, but we are not giving up because we believe that what we have is an offer that makes sense for the club.

They will say it was too late. We said ‘you need to give us feedback and if we have something wrong, tell us what’s wrong and we can try to make it right’. But we haven’t even had that chance. They told us the weekend. I’m not going to criticize Raine because we’re late and in her defense they’ll use that and say you should have been much sooner.

“[When] we saw this process, we thought ‘well, it’s still going to be too expensive’ and then we started getting vibes that in our opinion the offers were quite reasonable, people were talking about the £2.5bn figure, which versus Current income seems sensible enough. They make financial sense, which is why we launched a late offer. We thought ‘if the deal would really be done at those kind of prices, then let’s try it’.

“[…] Two weeks before, we hadn’t decided we wanted to do it, it’s as simple as that.”

-Tom Crotty; source: telegraph


(Crotty makes a good point that private equity firms like Clearlake Capital can’t own majority stakes in the NFL, for example, since they’re by definition looking for quick profits, but that’s why the Raine’s ten-year retention requirement was an important consideration, and the fact that Capital’s co-founder is an “active director” would also suggest a more personal touch from them).

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