Mark Walter and Todd Boehly are in talks to sell their stakes in Premier League club Chelsea to majority owner Clearlake Capital, according to sources familiar with the matter.
Walter and Boehly each own just under 13% of Chelsea, having acquired their stakes in 2022. Two sources told Front Office Sports that discussions over a potential sale are ongoing, although one source said the talks began before the federal investigation into Walter’s insurance companies became public.
The potential Chelsea stake sale comes shortly after Walter’s high-profile exit from the Los Angeles Lakers.
Chelsea talks follow $12.5 billion Lakers sale
Walter last week sold his controlling stake in the Lakers at a $12.5 billion valuation, just one year after acquiring the NBA franchise for a then-record $10 billion valuation.
The rapid transaction has raised questions about Walter’s financial position as his insurance businesses face federal scrutiny. Sources previously suggested that the speed of the Lakers sale could indicate a need for additional liquidity.
Walter’s potential exit from Chelsea would further reduce his exposure to major sports assets.
Insurance businesses under investigation
Walter’s companies Delaware Life and Clear Spring Life & Annuity are under investigation by federal prosecutors in the Southern District of New York, as well as the U.S. Securities and Exchange Commission.
The investigations were disclosed in a June regulatory filing, which revealed that the two insurance companies had received grand jury subpoenas. The companies said they were cooperating with the investigation.
A key issue involves the disclosure of so-called affiliated investments — investments involving companies connected to the insurer.
Delaware Life reported approximately $1.4 billion, or around 3% of its invested assets, in affiliated investments in June 2025. Following an internal review prompted by the federal subpoenas, the company later restated its filings and disclosed that the figure was actually more than $17 billion, or roughly 40% of invested assets.
University of Texas law professor Andrew Granato described the initial 3% figure as a significant warning sign because it sat just below Delaware’s threshold for mandatory regulatory review of affiliated transactions.
Granato said Delaware law could, in theory, expose executives to criminal penalties, including imprisonment, if authorities establish that false filings were knowingly and intentionally made to deceive regulators. Prosecutors would also need to establish that Walter was aware of the alleged conduct.
Chelsea, Clearlake Capital and Walter’s TWG Global did not immediately comment on the reported talks.