20 September 2023 , 18:05
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Chelsea are on the verge of securing a $500million (£402.9m) investment from US investment firm Ares Management.
The Blues have recently met with several potential investors, including club legend John Terry, to help raise funds. Chair Todd Boehly, who completed a takeover of the club in May 2022, is considering renovating Stamford Bridge or building a new stadium.
Chelsea's need for cash is slightly surprising considering they've spent more than £1billion on new players since Boehly's consortium took charge of the Premier League club. They have been the biggest spenders in Europe during the last 16 months.
Boehly's spending hasn't resulted in success on the pitch. Chelsea finished 12th in the Premier League last season - their lowest finish in nearly 30 years - and they have won just twice in all competitions since Mauricio Pochettino was appointed in July.
As reported by ESPN, Chelsea don't have any concerns about cashflow or breaching Financial Fair Play (FFP) rules, despite their huge expenditure. The new cash will be used for improvements to their stadium and Cobham training ground.
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The investment could also help Boehly build a successful multi-club ownership model called 'BlueCo'. Chelsea's owners have already purchased French side Strasbourg and are considering a swoop for Portuguese outfit Sporting Lisbon.
Ex-Chelsea director Mike Forde is an advisor for Ares and it's claimed he's involved in the deal. The company is based in Los Angeles and was founded in 1997, with more than 2,500 employees. According to Forbes, Ares recorded $3.1bn (£2.5m) in revenue last year.
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Boehly may struggle to relocate the club because independent company Chelsea Pitch Owners owns their name and would need to approve a move. The Blues have already agreed an £80million deal to buy land next to Stamford Bridge - which would give them more space to build on - but that is subject to a resident consultation period.
Rumours of Ares' investment have emerged just a day after Terry's interest was reported. It's believed the former England captain, who won five Premier League titles with Chelsea, is part of a consortium that want to buy 10 per cent of the club. It's unlikely both Ares and Terry would invest in the two-time European champions at the same time.
"I’ve come across Todd Boehly five or six times," said Terry earlier this month. "They are trying all they can. They have all the right intentions... they are trying to do the right things long term. All we can do is trust them. I believe we will be back."