Todd Boehly is leading a deal to take private jet company FlexJet public on the stock market in a move which could boost the Chelsea majority shareholder's spending power by up to $2.3bn (£2bn).
The Spac (Special Purpose Acquisition Company) deal is led by Boehly, with the move designed for companies without commercial operations to raise capital. Flexjet is the leading rival to Walmart billionaire Warren Buffett's Netjet company within the booming private aviation industry in the US.
The company based in Cleveland, Ohio, is being listed in order to raise capital through an initial public offering (IPO) in a merger with Horizon Acquisition Corporation II. This is expected to raise around £2bn in the first year, with Chelsea owner Boehly leading the deal in a move which would also boost his personal wealth and his ability to invest money into the Blues.
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This would not provide a direct injection into Chelsea as things stand, but Boehly has been described as a 'serial backer' of such deals by the Financial Times, and the move would provide him with the potential to increase his personal wealth via shareholder dividends in a growing market. He used Horizon Acquisition I in 2020 to acquire digital ticketing business Vivid Seats, which is now trading at about 20% below its IPO value.
Spending on private jets by US companies for their executives rose by 35% last year, and the booming market is believed to be the reason why Boehly has embarked on such a deal. Flexjet chief financial officer Mike Rossi said: "Our strong revenue performance has been driven by sustained growth in our fleet size and customer base."
There could be a basis for some criticism of investment in such industries, with the BBC reporting use of private jets was found to have the worst emissions per kilometre travelled than any other form of travel. One of the most popular jets, The Cessna Citation XLS, burns 189 gallons (857 litres) of aviation fuel per hour on average.
American businessman Boehly has a background in sport but hadn't ventured into football before taking over at Stamford Bridge as part of a consortium in the summer. Chelsea smashed the Premier League record for the biggest spend in a transfer window with over £250m invested in a much-needed squad revamp.
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