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Ares kicks $500M over to struggling Chelsea FC

Sep 21, 2023

Michael Arougheti, co-founder of Ares. Photo: Patrick T. Fallon/Bloomberg via Getty Images

Chelsea FC raised about $500 million from Ares Management, the Financial Times reports.

Why it matters: The investment is another large chunk of cash headed to a professional sports team, and this time, it comes from a rapidly growing investment firm that has its various arms in vast piles of loans, financing, acquisitions and other securities.

Details: Bloomberg reported in August that Ares was in talks about the funding, a deal that would follow a range of investments the firm has in other pro soccer teams. FT said on Thursday that the money has arrived.

  • The funding also comes after Chelsea's new owners took over the club and spent lavishly on players, a spree that failed to boost the team's standings. Chelsea finished in 12th place last season in the Premier League.

What they're saying: The FT reports that the $500 million came in the form of a preferred equity deal.

  • "Chelsea, which is controlled by a consortium including private equity group Clearlake Capital and US financier Todd Boehly, is looking for ways to boost revenue after an expensive transfer window," FT reports.
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