(Bloomberg) -- 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 already there include a consortium led by former Guggenheim Partners executive 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 U.S hedge fund manager Ken Griffin.
The Raine Group, the New York-based merchant bank handling the sale for Chelsea’s owner Roman Abramovich, has been weighing offers submitted by last Friday’s deadline. It has now informed some of those who haven’t made the cut, the people said, asking not to be identified discussing confidential information.
A representative for Raine didn’t 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. Another investor chasing the club is the U.K. property developer Nick Candy. One group led by Centricus Asset Management offered more than 3 billion pounds ($3.9 billion) for Chelsea, Bloomberg News reported.
A deal in that price range would easily mark the biggest takeover of a European football club, passing the U.S. Glazer family’s acquisition of Manchester United FC for more than 700 million pounds in 2005.
Abramovich Sanctioned
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 U.K. government to place him under far-reaching sanctions for his ties to President Vladimir Putin’s regime.
Since buying Chelsea in 2003, Abramovich 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 UEFA Champions League title last year and currently sit third in the Premier League.
The huge interest in the club from U.S. 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.
In addition to Manchester United, Americans have invested in Premier League clubs including Arsenal FC, Burnley FC and Liverpool FC.
Charity, Stadium
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 U.K. government, which has frozen Abramovich’s assets and will need to grant a special license for a sale to go ahead, could also get involved if a bidder doesn’t meet its expectations.
Other considerations include how much of the offer price will go to charity and how much can be put toward renovating the club’s Stamford Bridge stadium. The Financial Times reported earlier that the consortiums led by Boehly and Harris were leading the race for Chelsea based on the complicated set of criteria.
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