Chelsea's owners bought a majority stake in French Ligue 1 side Strasbourg, a little over a year after taking over the English Premier League club from Roman Abramovich.
BlueCo, the consortium of investors which purchased Chelsea in May 2022 for £4.25 billion ($5.4bn), is led by American Todd Boehly. The Guardian reports that BlueCo paid around €75 million ($82m) for a near 100 percent stake in the club.
"This is an important day for Racing," said Strasbourg president Marc Keller, who will stay on the job. "It's something my shareholder friends and I have been thinking about for the past two years."
The consortium plans to help Keller's plans by providing capital that will enable investment for the men's and women's first teams, as well as the academy and other parts of the club.
The Sporting News looks at why Chelsea's owners chose to buy Strasbourg.
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Why did Chelsea buy Strasbourg?
BlueCo shareholders declared that they are "committed to preserving the heritage of Racing (Strasbourg)," but they also want to help the Ligue 1 side improve their reputation alongside Chelsea.
"This strategic investment would further our presence in European football, alongside our ownership of Chelsea. We believe it would create huge opportunities to share knowledge and expertise."
Since Boehly took over the Blues in London, he has stated that a multi-club model is a good pathway for young players to gain experience.
Over the past year, Chelsea have signed young players such as David Datro Fofana, Andrey Santos, Gabriel Slonina, and Cesare Casadei. Boehly has focused a lot on their youth setup, something that the acquisition of Strasbourg can now help with.
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How much did Chelsea pay for Strasbourg?
Racing Strasbourg made it clear that this investment was necessary for the club to take the next step in its growth.
"We were aware that we had reached the ceiling of our model, and if we wanted to continue driving Racing forward and projecting it into a new dimension, we necessarily needed to be accompanied by a solid structure capable of supporting our development and ambition."
The full size of the stake is unknown, but it has been reported that Chelsea paid £65m ($82.6m) for close to full ownership of the French club. Becoming majority owners was a key part of the negotiation from Chelsea's side.
How many clubs does Chelsea own?
Boehly has been looking to start his multi-club model since the summer of 2022.
He initially started talks with French club Bordeaux, but could not come to an agreement with president, Gerard Lopez. Chelsea also approached Lyon and Sochaux in France, however the Blues did not want to settle for partial ownership.
Strasbourg are the first football team to be owned by Chelsea. They are also reported to be interested in buying a stake in Portuguese side Portimonense, who finished one place above the relegation zone in Portugal's top-flight.
Outside of the sport, Boehly is co-owner of MLB team Los Angeles Dodgers. He also holds stakes in Los Angeles based Lakers and Sparks (NBA and WNBA).
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Who are Chelsea's owners?
The 49-year-old Boehly is the face of Chelsea's ownership, but he is not the only businessman involved in the BlueCo consortium. Investment firm Clearlake Capital, Swiss billionaire Hansjorg Wyss, and LA Dodgers co-owner Mark Walter are all partners with Boehly.
According to Forbes, Boehly is worth around $4.5bn (£3.5bn). Many have questioned whether Clearlake Capital are owned by Saudi Arbia PIF, but it has been said that the two merely have an excellent relationship.
Across the summer and January transfer windows in the 2022/23 season, Chelsea spent over £585.5m ($743.8m) on transfers for players like Enzo Fernandez and Mykhailo Mudryk. The Blues are expected to continue to spend in the summer 2023 window, as Moises Caicedo and Nicolas Jackson are both reportedly joining the London side.
Chelsea's bloated squad in 2022/23 was highlighted as one reason why the club could not gain any momentum, finishing a disappointing 12th in the Premier League table. Strasbourg finished 15th in France's Ligue 1, avoiding relegation in the process.