The new owners of Chelsea FC are raising around $957 million of debt to boost the team’s operations and stadium.
Roughly $359 million will be put toward a revolving credit facility, with $598 million used for a term loan.
JPMorgan and Bank of America are involved in the financing.
- Due to its structure, Chelsea will reportedly not bear any of the interest expense from the financing.
- All proceeds will go toward the business. Financial Times reported that the owners will not pledge any assets or revenues associated with the team’s regulated entities to acquire the financing.
A consortium led by Los Angeles Dodgers, Lakers, and Sparks owner Todd Boehly purchased the team for $5.2 billion in May. The deal includes restrictions on debt levels.
As part of the takeover agreement, $2.09 billion was earmarked specifically to invest in the club, including the stadium, talent academies, and Chelsea’s players. The term loan will reportedly form part of the commitment, and the credit facility would be used for working capital purposes.
In Charge at Chelsea
The news comes after Chelsea appointed former City Football Group executive Tom Glick as president of business earlier this week. Glick is in charge of revenue growth, commercial strategy, and fan engagement.
The team has yet to fill the vacant chief executive role.
