When the BlueCo consortium became majority owners of Ligue 1 side RC Strasbourg in June 2023, it marked the beginning of another multi-club ownership model.
BlueCo, the same financial vehicle used to purchase Chelsea Football Club in May 2022, consists of private equity firm Clearlake Capital, chairman and significant minority shareholder Todd Boehly, and minority shareholders Mark Walter and Hansjörg Wyss.
Their purchase of the Blues in May 2022 followed a failed attempt by Boehly in 2019, with the three years between providing further time to muster up a financial master plan, one that now includes additional investment and ownership of a second club.
Boehly and his BlueCo associates are businessmen first and foremost, not football purists, as is the case with most owners of elite clubs. Boehly himself has incurred incredible wealth through successful financial deals, ranging from orchestrating TV rights for the Los Angeles Dodgers (a baseball team that he now has a 20% stake in) to involvement in the acquisition of Bruce Springsteen’s song portfolio.
Football is a different ball game, though. Chelsea’s recruitment drive began as anything but financially savvy following BlueCo’s takeover. Long-term contracts were handed out to new signings in a bid to bypass Financial FairPlay, prompting UEFA to impose a five-year limit on how long a transfer fee can be spread out.
Boehly’s attempts to bring Chelsea rapid success failed; those long-term contracts have yet to show their value; last season’s sixth-place finish fell short of fan expectations and was only achieved by a late-season comeback and the contributions of key man Cole Palmer.
A couple of additions may have been expected in this summer’s transfer window, with more focus going on offloading the likes of Kepa Arrizabalaga and Romelu Lukaku. Instead, Chelsea have just made Joao Felix their tenth signing of the window, taking their squad size to over 40. Unsurprisingly, six of the ten are 22 or under, cementing Chelsea’s status as the Premier League’s youngest squad.
Chelsea adopted an early approach of buying young players under BlueCo. This method has remained, despite limited success. Now, through their purchase of Strasbourg, they have an indirect way of ensuring some of the hottest prospects end up at Stamford Bridge, increasing the chances of unleashing the next big stars.
In France, the signings of Davinson Sanchez, 27, and Joseph Okumu, 26, were snubbed last summer due to age factors. BlueCo’s prioritisation of youth and development over immediate success has angered some fans.
‘Two transfer windows have come and gone, and all we can do is watch helplessly as our club is stripped of all its experienced players in favour of young up-and-coming players.’ said Ultra Boys 90, a Strasbourg supporters group, in a statement on X.
‘It is now clear that BlueCo requires the recruitment of players aged 23 years or less. No professional club can be competitive under these conditions. Without balanced recruitment, the tens of millions invested in these young players will not serve Racing but only the interests of the new owners.’ they added.
Last season, Brazilian teenagers Ângelo and Andrey Santos were both loaned to Strasbourg from Chelsea, as now-departed manager Patrick Viera led a youthful team to a 13th-place finish in Ligue 1. The 2024/25 season will see further loan moves as the cap of three loans from one club to another is utilised by Chelsea.
Chelsea’s new 19-year-old signing Caleb Wiley joined Strasbourg following the USA’s quarter-final exit from the Olympics, while 20-year-old Brazilian Andrey Santos returned to the French side for a second spell following Chelsea’s preseason tour of the U.S.
Strasbourg are making permanent moves of their own too, albeit with Chelsea’s influence. The most prominent of those being the acquisition of 18-year-old Colombian Oscar Perea, who arrived from Atletico Nacional after initial talks with Chelsea. Senegalese teenager Pape Diong trained with Chelsea before making a permanent move to Strasbourg from Dakar-based AF Darou Salam.
Chelsea’s influence is clear and expected but also concerning. Their own transfer strategy has resulted in an overblown squad with multiple players fighting for the same positions. Strasbourg already has the second-largest squad in Ligue 1 after PSG; it will continue to grow as low-cost youth is brought in.
With an ever-increasing profit drive from owners, potential is worth more than an established star. It’s no surprise that BlueCo are reportedly interested in acquiring shares of Brazilian club Vasco de Gama, enabling them to spot talent even younger and maximise academy prospects at the source.
Players are being snapped up by European clubs despite limited game time and, in some cases, without playing any top-flight football. Brazilian teenager Pedro Lima played just eight Série B games for Brazilian second division side Sport Recife before his £8 million move to Wolves in June.
Multi-club ownership models such as BlueCo’s are gaining traction globally. Over 330 football clubs worldwide are involved in an MCO model; two-thirds of those are based in Europe. They are contentious among fans but are seen as a natural business progression for owners, bolstering financial security and adding value while doing so.
Negative sentiments from fans point towards the removal of historical club foundations that are being stripped away in favour of a collective approach across the board. City Football Group, which owns 13 football clubs across four confederations, has the same badge template for eight of the 13 teams under their control.
Manchester City were the first to adopt the template when fans helped design their current badge in 2015. Since then, it has served as the hallmark for new CFG clubs, hindering the possibility of any individuality and instead focusing on global recognition.
Teams within the same MCO model often endorse similar styles of play, have aligned business operations, and share the same global network of scouts and academies. Such operations make it difficult for clubs outside of MCO’s to keep up, leading to an inevitable decline in single-party ownership.
Risk diversification is thought to be the standout benefit of the MCO model, but it does not guarantee financial security. The MCO portfolio of American private equity firm 777 Partners has not been able to sustain its clubs financially.
Under 777, Belgian side Standard Liege have struggled with financial mismanagement, resulting in unpaid wages for players, while Vasco de Gama have been embroiled in legal battles with 777 regarding player image rights. Everton fans may feel relieved that 777’s recent takeover bid failed at the last hurdle.
BlueCo’s focus is on maximising a player pool that grants Chelsea the first pick. Now, more than ever, football clubs are just another branch of an investment portfolio, one that provides extreme wealth to those who can override ethics and comfortably live with the consequences.
When one group accumulates enough wealth to have sufficient influence in the game, they are then able to shape the rulebook in line with their financial needs.
The fans of Strasbourg, along with those of the other ‘little sister’ clubs, will bear the brunt, as they are merely being used as a prop to support their older sibling.
The controversial Super League plans will eventually prevail as fewer clubs gain an unproportionate amount of power to override any pushback.
Instead of cutting off clubs below them, top clubs will instead leverage them to consolidate their own power.
