Takeover of Chelsea Soccer Club Receives Approval from U.K. Government

The UK government has signed an agreement to sell football club Chelsea FC for £4.25 billion, or about $5.3 billion, to a consortium led by Los Angeles Dodgers co-owner Todd Boehly.

The UK Premier League team was previously owned by Roman Abramovich, a Russian oligarch sanctioned after the invasion of Ukraine. After Mr. Boehly's consortium reached an agreement with Mr. Abramovich, the UK government had to go through the deal to ensure it met sanctions restrictions.

Mr. Abramovich previously said he would not receive any proceeds from the sale of the football team, which were donated to charity. Funds from the sale are expected to be paid into an account controlled by the UK government.

To complicate matters more, Mr. Abramovich loaned the club about $1.9 billion through a Jersey-based company. There have been concerns about how  Abramovich could cancel the loan since he is not part of the European financial system.

£2.5 billion of the total investment will be used to buy the shares in Chelsea, and that money will be distributed to charity. The remaining amount of £1.75 billion is earmarked for investment in the club, including its stadium and women's team.

Abramovich acquired Chelsea for around £140m in 2003  and has been attracting, nurturing, and transforming his team into a powerhouse for many years. Last year, it won the Champions League, the top tournament for European clubs.