Todd Boehly’s Right-Hand Man Reveals Official Premier League Investigation Into £40m Chelsea Deal
Chelsea co-owner Todd Boehly is often portrayed as a figure of controversy by certain media outlets and rival fanbases. However, in the realm of sports investment, he is widely regarded as one of the most respected figures.
His bold approach to managing Chelsea, where he will remain chairman at least until 2027 amidst ongoing tensions with Clearlake, has led to accusations that he lacks an understanding of football.
However, his successful track record with the Los Angeles Dodgers, reigning MLB World Series champions, and the NBA’s LA Lakers, suggests that he is capable of thriving in multiple sports environments.
Boehly recently made a bid to acquire the Hundred cricket franchise, London Spirit, and the private equity mogul is involved in numerous ventures across the sports industry.
That said, Premier League football is a different arena – both in terms of the game and finances. The Lakers and Dodgers operate in closed-league systems where profits are virtually guaranteed.
At Chelsea, however, his investment has resulted in a staggering £364m loss over the past three years, though this has not yet triggered a breach of the Profit and Sustainability Rules (PSR).
Nonetheless, complying with future Premier League and UEFA spending regulations will require a significant revenue boost, with Chelsea’s commercial income being one key area the club’s owners are focusing on.
Chelsea’s current annual commercial income of £210m is the lowest among the top six clubs, with only Arsenal being close to them in this regard after some strong seasons.
It seemed a major oversight when Chelsea started the 2023-24 season without a front-of-shirt sponsor, a deal that is typically worth at least 10% of the club’s total revenue.
This issue persists into the current season, with Chelsea yet to secure a deal, unlike in 2023-24 when Todd Boehly finally arranged a £40m-a-year agreement with Infinite Athlete.
Recently, more details have surfaced regarding the Premier League’s investigation into Infinite Athlete and its connections to Boehly himself.
Infinite Athlete CEO Explains the Truth Behind the £40m Deal
Charlie Ebersol, the co-founder and CEO of Infinite Athlete, has a close relationship with Todd Boehly, leading the Premier League to classify their front-of-shirt deal as an “Associated Party Transaction” (APT).
According to the league’s rules, which were partly revised following Manchester City’s legal challenge, clubs must have sponsorship agreements with owner-linked entities assessed for fair market value.
The purpose of these rules is to prevent clubs from exploiting commercial deals to disguise equity funding.
While the exact nature of Boehly’s association with Infinite Athlete is unclear, Ebersol has shed light on the relationship and the ongoing Premier League investigation into the deal.
“It certainly accomplished our goals,” Ebersol said on the Unofficial Partner podcast.
“We set clear KPIs for our company and outlined what the deal had to achieve to justify the financial commitment.”
Ebersol emphasized that the deal was a significant undertaking for his company, and they felt confident about meeting their objectives, which they ultimately did.
“One downside is that my head of revenue now receives numerous inquiries from teams hoping for marketing deals, something that’s not traditionally part of our business model,” he added.
At this point in the discussion, Unofficial Partner host Richard Gillis raised the APT issue.