The Record-Breaking Sale Of Chelsea F.C. And Its Impact On Sports Franchises

There has never been a better time in history to sell a sports franchise. When looking at the most expensive sports team purchases of all time, most have occurred within just the last few years. If the reports we're hearing on the day we published the article below are true, a new record was set. And it wasn't just set. It was SMASHED. Prior to this reported sale, the most expensive sports team purchase of all time was the $2.3 billion paid by David Tepper for the NFL's Carolina Panthers in 2018.

On Friday, April 29, 2022, it was reported that sanctioned Russian billionaire Roman Abramovich had reached a deal to sell Chelsea F.C. to British billionaire Jim Ratcliffe. According to numerous sources, Jim Ratcliffe just agreed to buy Chelsea F.C. for…

$5.3 billion

If true, that would be a significant premium over the $250 million Roman is believed to have paid for the team in 2003. So you might assume that Mr. Abramovich is doing a pretty serious celebratory dance today. Unfortunately, that's not the case.

One of the primary stipulations in Roman's U.K. sanctions package was that he could not personally benefit from the sale of Chelsea. Therefore, Ratcliffe is reportedly paying around $3.2 billion of the sale price to a charitable trust Abramovich established upon his announcement that he was going to sell the team. At the time of the deal, Ratcliffe also announced his intention to invest $2.1 billion into the team over the coming years.

UPDATE: A few hours after we published this article with the news of Ratcliffe's reported purchase, conflicting reports began to emerge. Apparently, the Ratcliffe deal is not official, and a billionaire named Todd Boehly, who is part owner of the LA Dodgers, is apparently in pole position to acquire the club for $3 billion.

Boehly earned his fortune in the private equity world, as the President of Guggenheim Partners. Until we learn official numbers, let's assume Chelsea is selling for $3 billion. Either way, the sale needs to be approved by British regulators.

Whoever ends up owning Chelsea, for whatever price, if it is a record it likely won't be a record that lasts a long time. In early March, the siblings who inherited the Denver Broncos from Pat Bowlen upon his death in 2019 announced that they were putting the team that had been in the family since the 1980s up for sale. The Broncos are expected to fetch $5 billion.

So in the meantime, let's take a look at the ten most expensive sports team purchases.

#1: Chelsea F.C. – $3 billion (but also maybe $5+ billion)

This potential sale marks a significant shift in the landscape of sports franchise valuations. Chelsea F.C. has always been a high-profile club in the world of football, and this sale could set a precedent for future transactions.

#2: New York Mets – $2.4 billion

In September 2020, hedge fund billionaire Steven A. Cohen agreed to buy 95% of the New York Mets at a team valuation of $2.4 billion. Before that transaction, Cohen already owned around 8% of the Mets, showing a strong commitment to the team and a belief in its future.

#3: Carolina Panthers – $2.3 Billion

The second most expensive sports franchise purchase ever occurred in 2018 when hedge fund billionaire David Tepper bought the Carolina Panthers for $2.3 billion from former owner Jerry Richardson. Richardson faced misconduct allegations that led to the sale of the team, which had been in the family for decades.

The Panthers are just a few years removed from a Super Bowl berth but missed out on the playoffs this season, the first under Tepper's tenure.

#4: Houston Rockets – $2.2 Billion

As a kid, you may have wanted to purchase a sports team. How cool would that be? You'd get to have input on personnel decisions and would make a ton of money. For Tilman Fertitta, he made that dream come true in 2017 when he spent an NBA-record $2.2 billion to acquire the Houston Rockets.

#5: Los Angeles Clippers – $2 Billion

Former Clippers owner Donald Sterling had a tumultuous relationship with the NBA, marked by a two-year legal battle after making racist remarks. He was forced to sell the Clippers and settled his lawsuit with the NBA by selling to Microsoft co-founder Steve Ballmer. At the time, it was the most expensive purchase in NBA history.

#6: Los Angeles Dodgers – $2 Billion

In 2012, Guggenheim Baseball Management spent an even two billion dollars on the Dodgers, ending the tumultuous Frank McCourt era. The group, which includes NBA Hall of Famer Magic Johnson, has restored the Dodgers to being one of the best teams in baseball.

#7: Manchester United – $1.5 Billion

Malcolm Glazer purchased a majority stake in Manchester United in 2005. This transaction is notable not just for its size but also because it was the only soccer club purchase worth more than a billion dollars at that time. Many fans were upset with the amount of debt Glazer took on to finance the acquisition.

#8: Buffalo Bills – $1.4 Billion

Terry and Kim Pegula purchased the Bills in 2014 amid rumors that the team would move out of Buffalo. The Pegulas have worked hard to keep the team in western New York, and the Bills broke a 17-year playoff drought with a postseason appearance in 2017.

#9: Miami Marlins – $1.2 Billion

When the Marlins were sold in 2017, the big headline was that Derek Jeter was among the ownership group. Jeter was joined by billionaire Bruce S. Sherman, who helped finance the $1.2 billion deal.

#10: Seattle Mariners – $1.2 Billion

John Stanton led a 17-person local group that wrestled majority control of the Seattle Mariners from Nintendo of America. The Mariners partnered with DirecTV in 2013, which was believed to add significant value to the team's purchase price.

#11: Toronto Maple Leafs – $1 Billion

Canada's largest telecommunication companies Rogers Communications and BCE Inc. purchased 75 percent of the Maple Leafs in 2012 for an even $1 billion, which was five times the revenue of the team. This acquisition further solidified the Maple Leafs' status in the sports community.

The 10 Most Expensive Sports Teams:

• #1: Chelsea F.C. – $5.3 billion
• #2: Carolina Panthers – $2.3 Billion
• #3: Houston Rockets – $2.2 Billion
• #4: Los Angeles Clippers – $2 Billion
• #5: Los Angeles Dodgers – $2 Billion
• #6: Manchester United – $1.5 Billion
• #7: Buffalo Bills – $1.4 Billion
• #8: Miami Marlins – $1.2 Billion
• #9: Seattle Mariners – $1.2 Billion
• #10: Toronto Maple Leafs – $1 Billion

As the sports world continues to evolve, these transactions reflect not just the financial strength of the franchises but also the growing interest and investment in sporting organizations. The record-setting sale of Chelsea F.C. exemplifies this trend and sets the stage for future sales that could further break financial boundaries.