Chelsea Ownership Clash as Todd Boehly and Clearlake Capital set to Dissolve Consortium after 2 years

Chelsea ownership at odds as Todd Boehly and Clearlake Capital set to dissolve consortium after two years due to difference in approach and ambition.

Just over two years after the club was taken over from its long-term ownership, Chelsea has again landed in leadership uncertainty as tension rises between Todd Boehly and Clearlake Capital’s Behdad Egbali.

The two forces behind the consortium that bought Chelsea in a £4.25 billion deal from Roman Abrahamovic in May 2022, California-based private equity firm Clearlake Capital, represented by Behdad Egbali and US businessman Todd Boehly are exploring the possibility of buying out each other, according to sources close to the club.

The relationship between Todd Boehly, who owns around 40 percent of the shares and the majority shareholders Clearlake Capital, represented by Behdad Egbali, has reportedly deteriorated in recent times, creating uncertainty over the continuity of their joint responsibility of managing the club.

Their joint takeover of Chelsea heralded a new era for the club, with Todd Boehly serving as the public face of the ownership, deeply involved in daily operations and player acquisitions, while Clearlake Capital is responsible for the financial muscle behind the scenes.

In the few years of their reign, although the promised good days is yet to reach fulfillment as the on-field matters are concerned, the relationship between the joint owners was never seen to sway until recently, when it is finally appearing that the process they embarked on is taking shape.

However, the reports has revealed that the emerging Chelsea is not a unanimous dream, but that of one party, completely distant from the vision of another.

Chelsea Ownership considering an end to consortium

Despite initial optimism, cracks in the relationship have begun to show. Sources close to the situation suggest that differences in vision between Boehly and Behdad Egbali is at the heart of the issue. Boehly, known for his hands-on style and bold decision-making, has often clashed with Clearlake’s more conservative, finance-focused approach.

Todd Boehly’s willingness to break and land marque signings, irrespective of the financial implications is not one shared by Behdad Egbali, whose approach can already be seen taking shape at Chelsea, i.e., one where the team is made of a lot of promising young players, on low wages and long-term contract agreements.

There were lots of concerns over the approach of Todd Boehly, as the club continuously try to balance the books amidst Financial Fair Play breaches and sustainability of their own financial strategy, with a potential rise in cost of maintenance and future deals should they continue to embrace Boehly’s ideas.

His direct involvement in player negotiations, and a host of erratic management decisions he has made have not sat well with Clearlake. The majority stakeholders have reportedly grown increasingly uneasy with what they perceive as unsustainable decision-making.

The signing of Enzo Fernandez and Mykaylo Mudryk for the fees they came in for was also highlighted by Clearlake Capital, whose emphasy is solely on ensuring Chelsea remains financially viable under the strict Financial Fair Play regulations imposed by UEFA.

Thanks to their approach, they have been able to lower the average wage at the club to around £62,000 per week even at a period when the average in the Premier League is around £70,000 per week. According to reports, they inherited an average wage of £200,000 from the previous administration.

Boehly, in contrast has a different ideology as he is more familiar with American sports, where salary caps and financial fair play do not exist in the same form. To his credit, all he wanted is to make Chelsea a force to reckon with, and it is by spending big that they can match the current competition.

Todd Boehly and Behdad Egbali had enough of each other

Chelsea’s failed move for Victor Osimhen was the climax of the many incidents that vexed Boehly. The club’s offer to the Nigerian striker was so underwhelming for a superstar, knowing that 43 percent goes for tax and another 20 percent to NHIS, they offered £130,000 a week, meaning the player goes home with less than £50,000 per week, with image rights already included.

It was the turning point in their relationship as the deal fell through. Todd Boehly believed the club should have offered more to see Chelsea sign Victor Osimhen but Behdad Egbali was more concerned with keeping to the wage structure already established.

Feeling restricted by the majority shareholders at the club, as his vision is not manifesting after two years at Chelsea, hence, he would love to either have it all or have none of it.

The development of the new stadium is also a subject upon which both Todd Boehly and Behdad Egbali differs. The latter reportedly wants the club to move to a new site while Todd Boehly prefers that they extend the Stamford Bridge and remain in the heart of West London.

Speaking via QatarEconForum on their plans for the Stadium in May, Todd Boehly said; “Long term we are working on the stadium plan. We have a really unique spot in London. So many people can come to a Chelsea game and we are basically in the heart of west London, but we only have a stadium that seats about 40,000”

“To update the quality and size of the stadium is a priority for us over the next decade. [Plans] have already started, but you have to have a lot of conversations with a lot of constituents because you are in the middle of London. The good news is we’re in the middle of London, but the bad news is we’re in the middle of London!” He concluded.

It has been reported that the American is opened to selling his own shares while Clearlake Capital does not consider selling theirs. Should Boehly be opened to selling to his counterpart, Clearlake Capital will become the sole owner of Chelsea in the coming weeks.

Clearlake Capital as sole owner

If the rising tension can not be resolved and Clearlake Capital eventually become the majority owner of Chelsea, it would mean a return to what the fans is familiar with. Unfortunately, it is the man that could potentially leave that is closer to Roman Abrahamovic in approach.

The road ahead could be long and frustrating for fans as there will be limited checks and balances. Behdad Egbali will be in total control of affairs and should things not go well with his approach of keeping a low wage bill and signing prospects, it would delay Chelsea’s return to prominence. The good news is, it is a sole ownership administration that brought the club her enviable success.

The Clearlake Capital has made their intention known, that they will not give up their shares and are ready to buy the 40 per cent belonging to Todd Boehly, who is also opened to selling. Losing Todd Boehly will not be pleasing for the fans as he is the one closer to the fans and has endeared himself as more of a fan than an owner.

However, with the relationship between himself and Behdad Egbali now on the rocks, there is no other alternative than to dissolve their association if a neutral ground can not be reached. And in a circumstance like this one, there can not to be a safe landing for two.

The coming weeks will birth more clarity to the uncertainty over the ownership of the club. This is a situation the fans are not unfamiliar with, yet, it could prove another major turning point in their history.

Whose administration will you prefer to continue at Chelsea ? Clearlake Capital or Todd Boehly. Let us know your opinion in the comment section.

Hassan Afolabi