Why Chelsea’s New Sponsorship Deal Raises Fair Market Value Concerns for the Premier League

The football business world is currently abuzz with news of Chelsea Football Club's purported sponsorship deal with Infinite Athlete, a recently formed company arising from the merger of Tempus Ex Machina and Biocore. The proposed partnership, set to exceed £40 million, has sparked significant interest due to its notable connection to Chelsea's owners, Clearlake Capital and Todd Boehly. While this move seems promising at first glance, it beckons a comprehensive analysis from a business standpoint to ascertain its compliance with the Premier League's Fair Market Value (FMV) regulations.

The timing and particulars of this sponsorship agreement warrant meticulous scrutiny. Chelsea's pursuit of a new front-of-shirt sponsor hit an impasse until the emergence of Infinite Athlete – a company closely aligned with the club's ownership – offering a deal that nearly doubles the £25m valuation set by Chelsea for this season's shirt sponsorship. Such a substantial leap naturally invites scrutiny, particularly concerning the FMV guidelines in place.