American Investors Todd Boehly and Mark Walter have finalized the sale of their stake in Premier League club Chelsea FC amongst Walter's ongoing DOJ and SEC investigations.
Todd Boehly and Mark Walter sold their combined 25% stake in Chelsea FC to the majority owners Clearlake Capital this week less than five years after buying the club from Russian businessman Roman Abramovich in 2022.
Clearlake bought out the two co-owners for roughly $1.27 billion, resolving some tensions between the private equity firm and Boehly on how the club should be managed. This sale gives Behdad Eghbali and Clearlake Capital nearly full ownership of the London-based Club, and ends Boehly's tenure as the club chairman.
This deal also comes soon after Walter sold his controlling stake in the Los Angeles Lakers for a $12.5 billion valuation earlier this year. Walter is in the midst of ongoing federal investigations into the billionaire's insurance holdings and financial dealings.
Walter does continue to hold ownership in the Los Angeles Dodgers, The Los Angeles Sparks, and the Cadillac F1 team amongst others.
Why is Mark Walter being Investigated?
Mark Walter is being investigated by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) in the United States regarding his financial deals and insurance holdings.
Walter owns two insurance companies, Delaware Life Insurance Company and Clear Spring Life and Annuity, who invested money by lending it to businesses that were expected to pay it back in with interest. However, the issue being investigated is that some of the loans ultimately financed companies linked to Walter, and were not accurately identified as affiliated transactions, and could be considered "self-dealing."
Walter himself has declined to comment, but both companies have acknowledged that they incorrectly labeled loans made to companies tied to Walter for billions of dollars.
Who Owns Chelsea FC?
Clearlake Capital were already the majority owners of Chelsea FC before, owning roughly 61.5% of the club. After buying out Mark Walter (~12.8%) and Todd Boehly's (~12.8%) stake in the club, Clearlake now own roughly 87.2% of the club. Swiss businessman Hansjorg Wyss owns the rest of the club, maintaining a ~12.8% stake.
What is Clearlake Capital?
Clearlake Capital Group is an American based private equity firm owned by Behdad Eghbali and José E. Feliciano. Clearlake is leader in alternative investments, managing private equity, credit and other private markets. The group manages roughly $185 billion in assets across the globe.
Clearlake was founded in 2006 by Eghbali and Feliciano, and has it's headquarters in Santa Monica, CA.
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