WSJ News Exclusive | Chelsea FC Enters Into Exclusive Talks With Todd Boehly, Part Owner of Dodgers

Any deal is still subject to signoff from the U.K. government and there are no guarantees the two sides will reach a deal. It comes after a roughly two-month auction process that attracted a who’s who of American bidders, aiming to add another marquee sports brand to their stable of franchises at home.

Mr. Boehly’s group edged out two other U.S.-led groups headed by

Stephen Pagliuca,

co-owner of the Boston Celtics and co-chairman of private-equity firm Bain Capital, and Philadelphia 76ers co-owners and private-equity veterans

Josh Harris

and

David Blitzer.

One possible wild card in the process: British billionaire

Jim Ratcliffe,

the owner of chemicals producer Ineos, said in a statement Friday that he also submitted a bid. The last-minute bid came after he had earlier expressed interest in the process but didn’t proceed, a person familiar with the matter said. The bid is unlikely to gain traction for now as the other original bidders would likely be next in line should discussions with Mr. Boehly not result in a deal, the person said.

The sale is expected to be valued at over $3 billion, setting a record sale price for a professional sports team. It would bring to an end the oligarch’s almost 20-year ownership of the English Premier League soccer club after the U.K. imposed sanctions against Mr. Abramovich because of his ties to the Kremlin.

Chelsea’s sale is a high-profile example of the financial reshuffling of Russian wealth sparked by the war in Ukraine. The U.K. government targeted Mr. Abramovich for sanctions after the start of the war. The sale of the club is being run under the close watch of U.K. government officials, who want to make sure proceeds of the sale don’t benefit Mr. Abramovich.

An orphan who amassed huge wealth in the years after the collapse of the Soviet Union, Mr. Abramovich served as a provincial governor in Russia and maintains close ties to the Kremlin. The billionaire emerged as a Zelig-like figure in the weeks after the war, popping up as an intermediary in peace talks between Ukraine and Russia.

Mr. Boehly, former president of financial firm Guggenheim Partners LLC who now runs holding company Eldridge Industries, made an offer for Chelsea in 2019 but was rebuffed after the price fell short of the $3 billion Mr. Abramovich was seeking, The Wall Street Journal reported.

In 2012, he was part of the ownership group that snapped up the Los Angeles Dodgers for a record $2.15 billion.

At a sale price north of $3 billion, the Chelsea deal would surpass the $2.4 billion acquisition in 2020 of Major League Baseball’s New York Mets by billionaire hedge-fund manager

Steven A. Cohen

as the most ever paid for a professional sports team, according to Dealogic’s data on publicly announced transactions.

Chelsea, though, might not hold that title for long. The sale of the National Football League’s Denver Broncos is expected to eclipse all others.

Mr. Abramovich acquired Chelsea in 2003 for about £140 million, spending lavishly over the years to attract and develop top players, reshaping the team into a powerhouse. It won last year’s Champions League, the top tournament among European clubs.

The challenge for Mr. Boehly’s group, which also includes Clearlake Capital, a U.S.-based investment firm, if it consummates the deal will be to maintain the team’s success without the huge losses Mr. Abramovich incurred.

Over almost 20 years, Chelsea has generated a total net loss of £894 million, equivalent to $1.2 billion, according to filings with the U.K. corporate registry. At the same time, Mr. Abramovich has shelled out a total of close to $2 billion in loans to the club to support it financially.

Mr. Abramovich has said he won’t receive any proceeds from the team sale, which are earmarked for charity. He will also forgo the loans that the club owes him. Bidders earlier this week were asked to put £2.5 billion toward the charity—£500 million more than previously understood—and roughly £1.5 billion toward investments in the club including the stadium, according to people familiar with the matter.

The trick will be to generate new sources of revenue from the redevelopment of Chelsea’s antiquated Stamford Bridge stadium in the heart of tony West London. The existing facility accommodates a little more than 40,000, ranking it ninth among Premier League venues.

Chelsea first submitted a renovation plan in 2015 for the stadium to expand seating capacity by almost 45% to 60,000. Mr. Abramovich canceled plans in 2018 to spend more than $1 billion on the project after the U.K. blocked his visa renewal.

The sale of Chelsea to an American owner further strengthens a U.S. grip on England’s national sport. After the Chelsea sale, all four of the traditional Big Four teams—Arsenal, Chelsea, Liverpool and

Manchester United

—will be under American control.

Liverpool is held by Boston Red Sox owner Fenway Sports Group.

Manchester United’s controlling shareholder is the Florida-based Glazer family. The team is also listed on the New York Stock Exchange.

Arsenal F.C. was acquired outright in 2018 by

Stan Kroenke,

owner of the Los Angeles Rams.

Aston Villa F.C., Prince William’s favorite team, is owned by Fortress Investment co-founder

Wes Edens

along with Egyptian billionaire

Nassef Sawiris.

The interest underscores the growing popularity of the Premier League among U.S. audiences. NBCUniversal, owned by

Comcast Corp.

, last year agreed to pay close to $2.7 billion to extend its Premier League broadcasting rights for six years. That is close to triple the $1 billion value of the broadcaster’s current six-year deal, which expires next month.

Write to Cara Lombardo at [email protected], Ben Dummett at [email protected] and Miriam Gottfried at [email protected]