Mark Walter and Todd Boehly have agreed to sell their combined 25 percent stake in Chelsea Football Club to private equity firm Clearlake Capital, in a transaction that values the London-based club at approximately £5 billion, including debt. The deal is expected to generate around £950 million in cash for Walter and Boehly and is scheduled to close by the end of this year.

Chelsea announced that affiliates of Clearlake Capital will fully acquire the ownership interests held by both Boehly and Walter, consolidating Clearlake's control over the club. Although financial terms were not disclosed in the statement, people familiar with the matter indicated that the purchase would allow Walter and Boehly to realize a modest gain on their initial investment.

Clearlake plans to fund the acquisition using its own capital alongside significant direct investments from its billionaire cofounders, Behdad Eghbali and José E Feliciano. The club’s valuation accounts for approximately £1.4 billion in debt as of June 2023, ongoing spending commitments, and net proceeds from player sales this summer.

The ownership change is expected to facilitate substantial investment in Chelsea’s infrastructure, including stadium and training ground upgrades. The transaction will also lead to Todd Boehly stepping down as chairman of the club.

Walter and Boehly, both former colleagues at investment firm Guggenheim Partners, became owners of Chelsea in 2022 as part of a consortium with Clearlake after Russian oligarch Roman Abramovich was sanctioned and forced to sell the club following Russia’s invasion of Ukraine. Under current governance arrangements, Clearlake was the majority owner but shared control with Walter and Boehly until this deal.

Recent reports indicate that Walter and Boehly have been looking to divest assets to bolster liquidity across their sports and financial services holdings. Walter’s financial empire, in particular, has drawn scrutiny from U.S. prosecutors. In August, he agreed to sell the Los Angeles Lakers basketball team for $12.5 billion less than a year after acquiring it.

Neither Clearlake, Walter, nor Boehly provided a comment on the pending transaction. The sale marks a significant shift in the ownership structure of one of Europe’s highest-profile football clubs and signals continued private equity interest in major sports franchises.