American billionaires Josh Harris and David Blitzer are said to be the money behind Sir Martin Broughton’s approach to buy Chelsea, but if their bid goes through then what does this mean for Crystal Palace?
The Blues have been up for tender since Roman Abramovich had sanctions brought upon him and the club by the UK Government thanks to his links to Russian President Vladimir Putin. That news saw several consortiums get together in the hope of becoming Chelsea’s new owners, with former Liverpool and British Airways chairman and lifelong Blues fan Broughton reportedly enlisting Blitzer and Harris to provide the financial backing needed for his bid, which has now been shortlisted as one through to the next stage of the process.
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“I am assembling a team that will ensure the future success and financial stability of a club I’ve supported for over 60 years,” read Broughton’s written statement of intention to buy Chelsea. “We will secure a prompt purchase and smooth transition, with funds readily available for the immediate takeover of the club and immediate investment in the team, facilities, and commercial opportunities.”
There is no official word on Blitzer and Harris’ involvement in the bid yet, but the pair are currently tied up Palace, where together they own around 38 per cent of the club’s shares after buying into the Eagles in 2015 with a £50million investment. They, along with chairman and day-to-day overseer Steve Parish and digital entrepreneur John Textor, comprise the club’s board of directors, and all four meet on Fridays to discuss the latest goings-on in south London.
The nature of those meetings might change somewhat in the coming weeks with US merchant bank Raine Group, who are handling the sale of Chelsea on behalf of Abrahaovich, shortlisting Broughthon’s bid on Thursday. An announcement will need to be made soon, especially with the sale’s endpoint now in sight. Should Broughton's bid reach that far then the Premier League’s Owners and Directors’ Test would then have to be taken, which Blitzer and Harris would not pass unless they divested all the shares they have in Palace.
Theoretically, this would be enough to tick all the boxes, but there is still a decision to be made as to whether the Premier League would want to set such a precedent whereby owners can dump shares in one club and jump ship to another, especially with the season still ongoing. Broughton’s bid being shortlisted means being given access to Chelsea’s financial data including player contracts too, which raises further questions over a conflict of interest if Blitzer and Harris are involved.
For Palace, who posted losses of around £58million for the 2019/2020 financial year, it would be a blow to lose both Blitzer and Harris, though Textor’s involvement and his position as the club's largest shareholder would soften its impact. On the pitch, it seems likely that the Premier League broadcast money will continue to come while there is promise that Patrick Vieira is steering the team in the right direction.
The Eagles are also well-poised to repeat the kind of off-field business that helped them sell defender Aaron Wan-Bissaka to Manchester United for £55million in 2019. They redeveloped their Academy - from which Wan-Bissaka came - to the tune of £20million last year and this month saw graduate Tyrick Mitchell called into the senior England squad along with 21-year-old Marc Guehi.
Turning themselves into a more attractive place for young footballers from London to come to will only benefit them for the future, regardless of who is attending the Friday morning meetings.
