Ares Management has invested about $500mn into Chelsea FC as the Premier League club’s US owners seek to fund stadium upgrades and buy stakes in other football clubs.
According to two sources with knowledge about the matter, Ares, a US alternative asset manager has provided the capital infusion . One person described it as preferred equity.
Chelsea is looking to increase revenue following a costly transfer window. The consortium that controls the company, including Clearlake Capital, Todd Boehly and US financier Todd Boehly is trying to find ways.
Ares, Clearlake, and Boehly all declined to comment. Chelsea did not respond immediately to a comment request.
Chelsea spent hundreds of millions on its players under Clearlake and Boehly. They acquired the club from Roman Abramovich, a sanctioned Russian billionaire, for £2.5bn in May 2022.
At the IPEM conference in Paris, Clearlake co-founder Jose Feliciano said: “We bought an asset which is highly coveted by other potential buyers.” “We are very aligned to that fan and supporter base, because winning is the best way to increase our club’s value.”
The new owners are yet to see the return on their investment in a club whose fans have become accustomed to winning championships.
Chelsea finished in 12th place in the league last season . This meant that they missed out on a lucrative qualification to the Uefa Champions League. The new owners parted with two managers, and have appointed former Tottenham Hotspur manager Mauricio pochettino as the head coach. However, the Blues only won one out of five matches in the league this season. They are now ranked 14th. The club has not concluded a commercial deal to secure a shirt sponsor. This sponsorship would normally fetch tens or even hundreds of millions of pounds per year.
Feliciano stated that “the team had a difficult first season, which was our first season,” but also added, “We have an incredible amount of talent.”
The club in west London is considering whether it should redevelop Stamford Bridge or build a stadium at Earl’s Court. Chelsea’s 40,000-capacity Stamford Bridge Stadium limits its ability to generate revenue and compete with rivals who have larger and more advanced facilities.
Feliciano, however, said that the company’s financial management could be improved. “I believe what we are trying is to reduce the salary, and essentially [operating costs] of the business by more than $100mn per annum.”
Separately Boehly & Clearlake have agreed to purchase French team RC Strasbourg.
Ares has acquired interests in a wide range of sports, including Atletico de Madrid, Eagle Football and Olympique Lyonnais, a French club that was purchased by the group last year. Ares announced in September that it raised $3.7bn for investments into sports leagues and teams as well as media companies.
Ares, an alternative asset manager, invests in a variety of capital structures, including equity and credit, and can also offer protection via financing mechanisms.