Todd Boehly, the lead bidder for Chelsea FC, is reportedly set to sign the first team contract on Friday.

The Telegraph reported that executives are preparing to formally announce Boehly’s consortium as the preferred bidder to the U.K. government after the consortium completed the Premier League Owners’ and Directors’ Test.

In the last two weeks, reports surfaced that outgoing owner Roman Abramovich was asking to be repaid nearly $2 billion in loans he gave to the team as part of its sale, and that he asked bidders for additional money at the last minute. 

The accusations could have complicated the sale and Boehly’s exclusive negotiating period as the U.K. government will not approve the sale unless they’re certain Abramovich will not profit from it.

Abramaovich denied the claims on Thursday.

• He said the government will freeze the loan after the sale.
• The Russian oligarch has stated he intends to give the proceeds of the sale to a charitable foundation for “all the victims of the war in Ukraine.”

Boehly’s Bid

Sky News reported that negotiations are in progress regarding conditions designed to protect the club financially, including prohibiting the sale of shares in the club for 10 years, barring the owners from paying dividends or management fees for 10 years, and agreeing to debt-level limits.

Clearlake Capital will hold the majority stake, while Boehly controls the team’s operations. Abramovich has the final say on who buys the club. The team’s special license to operate expires May 31.

Formula 1 is off to a hot start this week ahead of the Miami Grand Prix, as its parent company reports a promising start to the fiscal year.

Liberty Media, also the parent company of the Atlanta Braves and SiriusXM, generated $2.19 billion in revenue in Q1 2022, a 6% increase year-over-year. 

The company’s F1 business pocketed $360 million in revenue during the quarter, compared to $180 million in revenue for the same period the year prior. F1 also secured new sponsorship deals in Q1 with software company Salesforce, tech giant Lenovo, and MSC Cruises.

• Liberty Media repurchased 348,000 shares of its F1 business in Q1 for $20 million.
• It announced the Las Vegas Grand Prix, which will join the F1 calendar in 2023.
• F1 extended broadcast deals in Q1 with Australia’s Foxtel Group and France’s Canal+. 

Liberty Media also posted growth in its Braves Group business, which generated $23 million in revenue in Q1, a 44% increase year-over-year. Its baseball revenue — ticket sales, concessions, media rights, suites, and seat fees — was $11 million in Q1.

Price Change 

In April, Greg Maffei, president and CEO of Liberty Media, said F1 will command a higher price for its next U.S. broadcast rights deal. ESPN has held U.S. rights to F1 since 2018, replacing NBC. In 2019, F1 agreed to a three-year extension with ESPN that runs through this year.

NBC paid $4 million annually from 2013 to 2018, but ESPN is currently not paying an annual fee.

DraftKings raised its revenue guidance for the financial year following its latest earnings report on Friday, but the sportsbook has taken a hit amid concerns over profitability. 

The Boston-based company posted revenue of $417 million in Q1 2022, up from $312 million for the same period the year prior. DraftKing’s Q1 growth was driven by the company’s B2C segment, which generated $404 million in revenue, a 44% increase compared to Q1 2021. 

• It raised its FY2022 guidance by $50 million to between $1.9 billion and $2 billion. 
• DraftKings reported 2 million monthly unique payers in Q1, a 29% uptick from Q1 2021.
• It reported that inflationary pressures had no impact on its business in Q1 2022. 

Despite what seems to be a strong start to the financial year, DraftKings faces an uphill battle to reach profitability. The company saw its operating expenses in Q1 2022 reach $933 million, a 46% increase year-over-year. DraftKings also reported a net loss of $468 million during the quarter, compared to $346 million for the same period the year prior.

Shares of the company have also tanked around 74% in the past year, from nearly $52 to $13. 

DraftKings, which is live with online sports betting in 17 states, hopes to improve its woes with successful launches of legalized mobile betting in New York and Louisiana in Q1 2022. 

Key Acquisition

On May 5, DraftKings acquired Golden Nugget Online Gaming for $450 million. DraftKings anticipates the acquisition will provide an increase in revenue with a combined customer reach of 5 million.