Ares Management, a US-based investment firm, is reportedly in discussions with Chelsea FC, the renowned English Premier League football club, regarding a potential capital injection. The talks are focused on determining the size and structure of a potential financing deal, according to sources familiar with the matter who requested anonymity due to the confidentiality of the information.
Earlier this week, Bloomberg News had reported that Chelsea was actively seeking funds. The club is said to prefer an equity investment, although no final decision has been made yet. Both parties continue to deliberate, making it uncertain if a deal will ultimately materialize. Chelsea also has the option to explore other investors, as mentioned by the sources.
Investing in Chelsea would add to Ares Management's expanding portfolio of football holdings. Notably, the investment firm recently announced an additional $75 million investment in Inter Miami CF, a Major League Soccer team that has gained considerable attention after the arrival of Argentine football sensation Lionel Messi. Ares Management already has investments in Spanish football club Atletico de Madrid and Eagle Football Holdings, a multi-club owner that supports teams including Crystal Palace FC in England and Olympique Lyonnais in France.
For Chelsea, securing new funds could help improve their financial position following a challenging start to the Premier League under the club's new ownership, which began in May 2022. Majority owner Clearlake Capital and American investor Todd Boehly have already spent over £600 million ($766 million) on player acquisitions, but the team has experienced limited success on the field. Chelsea finished 12th in the Premier League last season, marking its worst performance in nearly three decades.
In an effort to reposition the squad, Chelsea has recently offloaded several high-profile players in the current transfer window, with some heading to lucrative deals in the Saudi Pro League. Simultaneously, the club has been actively recruiting new talent to ensure competitiveness ahead of the upcoming Premier League season, set to commence this month. Additionally, the club is seeking funds to support the redevelopment of its iconic Stamford Bridge stadium.
Last year, Ares Management raised an impressive $3.7 billion to invest in the sports, media, and entertainment industry, surpassing its initial target of $1.5 billion. The fund empowers Ares to make investments across the capital structure, including both debt and equity. By potentially investing in Chelsea FC, Ares continues to solidify its presence and involvement in the global football industry.