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The English Premier League’s board of directors approved the sale of Chelsea FC to an ownership group led by Todd Boehly on Tuesday.
Before the sale can be completed, the government must approve the deal, which is valued more than $5 billion.
“The Premier League Board has today authorized the Todd Boehly/Clearlake Consortium’s proposed takeover of Chelsea Football Club,” the league announced in a statement.
“Chelsea FC will now negotiate with the relevant governments to get the licenses required to finalize the takeover.”
The current owner of the club is Russian businessman Roman Abramovich, who is subject to British government sanctions and has had his assets frozen.
Following Russia’s invasion of Ukraine in early March, Abramovich put the club up for sale, claiming it was “in the best interests of the Club.”
Boehly has shares in the Los Angeles Dodgers of Major League Baseball, the Los Angeles Lakers of the NBA, and the Los Angeles Sparks of the WNBA. Boehly has passed the Premier League’s Owners’ and Directors’ Test (OADT), according to the announcement.
The club stated that 2.5 billion pounds ($3.08 billion) will be used to purchase the club’s shares, with the remainder being transferred into a frozen UK bank account “with the goal of donating 100% to charitable organizations as confirmed by Roman Abramovich.”
The proceeds from the frozen UK bank account would require authorisation from the UK government, according to the club.
It further stated that the projected new owners would “commit 1.75 billion pounds ($2.16 billion) in additional investment for the club’s benefit.” This would include funds for the Chelsea Foundation charity, as well as investments in the club’s stadium, Stamford Bridge.
The Boehly deal was announced with little over three weeks left on the club’s existing operating license, which runs out on May 31.