Football: American bidders ready for final match in battle to own Chelsea

NEW YORK (BLOOMBERG, REUTERS, AFP) - At least three groups of mainly American investors have made it through to what is expected to be a final phase of the bidding war for Chelsea Football Club, according to people familiar with the situation.

While more bidders may still make the next round, those that have done so now include a consortium led by former Guggenheim Partner Todd Boehly, another by Apollo Global Management Inc. co-founder Josh Harris, and a third by the Ricketts family, the owners of Major League Baseball's Chicago Cubs, who have teamed up with the billionaire US hedge fund manager Ken Griffin.

The Raine Group, the New York-based merchant bank handling the sale for Chelsea FC owner Roman Abramovich, has been weighing offers submitted by last Friday's deadline.

The bank was not planning to announce on Thursday (March 24) which of those had made the first cut, but was instead telling those rejected for its shortlist of final candidates, the people said. Bid revisions have reportedly slowed the process.

A representative for the Raine Group did not immediately respond to a request for comment.

Bidders have sought to swoop on the rare chance to buy one of the top clubs in the English Premier League - Europe's richest football division.

One bid group led by Centricus Asset Management offered more than £3 billion (S$5.37 billion) for Chelsea, Bloomberg News reported. The London-based global investment firm's bid is said to be driven by co-founder Nizar Al-Bassam and CEO Garth Ritchie, who are reported to be season-ticket holders.

A deal in that price range would easily mark the biggest takeover of a European football club, passing the US Glazer family's acquisition of Manchester United FC for more than £700 million in 2005.

Russian billionaire Abramovich has owned Chelsea for almost 20 years. He put the club up for sale after Russia's invasion of Ukraine, which prompted the British government to place him under far-reaching sanctions for his ties to President Vladimir Putin's regime.

Since buying Chelsea in 2003, he has invested hundreds of millions of pounds to lure the best footballing talent to Chelsea and turn the team into serial winners. The club won the prestigious Champions League title last year and currently sit third in the Premier League.

The huge interest in the London club from US investors reflects the recent flood of American money into the world's most popular sport.

Harris already owns a stake in Premier League club Crystal Palace FC. For his Chelsea bid, he has the backing of Martin Broughton, a former chairman of British Airways Plc, and Vivek Ranadive, a co-owner of National Basketball Association franchise the Sacramento Kings. Another partner is David Blitzer, who owns sport teams including the NBA's Philadelphia 76ers.

Harris and Blitzer would have to divest their 40 per cent stake in Crystal Palace should their bid for Chelsea succeed.

In addition to Manchester United, Americans have invested in Premier League clubs including Liverpool, Arsenal and Burnley.

The sale of Chelsea could yet come down to more than money. Any new owners will need to pass the Premier League's fit and proper tests. The considerations include how much of the bid will go to charity and how much can be put toward the club's Stamford Bridge stadium. The Financial Times reported earlier that Boehly's and Harris's groups were leading based on the complicated set of criteria.

Saudi Media have not made the shortlist, an adviser to the group told Reuters, while Sky News reported that other bidders including Woody Johnson, owner of the New York Jets, had also been eliminated.

The Saudi Media Group's adviser added that the bid, which was headed by businessman Mohamed Alkhereiji, who is reported to be a season ticket holder at Chelsea, would be open to linking up with another consortium that does make the shortlist.

Sources close to the process said Chelsea do not want to deal with Saudi money due to potential complications and controversy which could add an extra hurdle to a fast-track sale.

Saudi Media insisted its offer was completely separate from the Saudi Arabian state, a move provoked by criticism of the country's human rights record.

Newcastle's Saudi-led takeover last year was widely criticised because of concerns over human rights.

Hedge fund Elliott Management, which owns AC Milan, has joined the Nick Candy-led Blue Football consortium as a "minor investor" in their bid for Chelsea, sources close to the bid said.

Elliott has injected a "multi-million pound sum" into the bid, the sources told Reuters.

British property developer Candy's bid was increased on Monday after being joined by "another large Korean financial institution", the parties said in a statement, with sources adding the consortium grew further on Thursday.

Elliott bought AC Milan in 2018 and has since helped the Italian giants become much more competitive in Serie A. The team are top of the standings, chasing their first league title in 11 years.

Candy had initially been joined in his consortium by South Korean companies Hana Financial Group and C&P Sports Limited before the new investors got on board.

The British government, which has frozen Abramovich's assets and will need to grant a special licence for a sale to go ahead, could also get involved if a bidder does not meet its expectations.