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Chelsea were founded on 10 March 1905 at The Rising Sun pub (now The Butcher’s Hook), opposite the present-day main entrance to the ground on Fulham Road, and were elected to the Football League shortly afterwards. The club’s early years saw little success; the closest they came to winning a major trophy was reaching the FA Cup final in 1915, where they lost to Sheffield United. Chelsea gained a reputation for signing big-name players and for being entertainers, but made little impact on the English game in the inter-war years.
Former Arsenal and England centre-forward Ted Drake became manager in 1952 and proceeded to modernize the club. He removed the club’s Chelsea pensioner crest, improved the youth set-up and training regime, rebuilt the side, and led Chelsea to their first major trophy success – the League championship – in 1954–55. The following season saw UEFA create the European Champions’ Cup, but after objections from The Football League and the FA Chelsea were persuaded to withdraw from the competition before it started.
The 1960s saw the emergence of a talented young Chelsea side under manager Tommy Docherty. They challenged for honours throughout the decade, and endured several near-misses. They were on course for a treble of League, FA Cup and League Cup going into the final stages of the 1964–65 season, winning the League Cup but faltering late on in the other two. In three seasons the side was beaten in three major semi-finals and were FA Cup runners-up. Chelsea were FA Cup winners in 1970, beating Leeds United 2–1 in a final replay. Chelsea took their first European honour, a UEFA Cup Winners’ Cup triumph, the following year, with another replayed win, this time over Real Madrid in Athens.
The late 1970s through to the 1980s was a turbulent period for Chelsea. An ambitious redevelopment of Stamford Bridge threatened the financial stability of the club, star players were sold and the team were relegated. Further problems were caused by a notorious hooligan element among the support, which was to plague the club throughout the decade. In 1982 Chelsea were, at the nadir of their fortunes, acquired by Ken Bates for the nominal sum of £1, although by now the Stamford Bridge freehold had been sold to property developers, meaning the club faced losing their home. On the pitch, the team had fared little better, coming close to relegation to the Third Division for the first time, but in 1983 manager John Neal put together an impressive new team for minimal outlay. Chelsea won the Second Division title in 1983–84 and established themselves in the top division, before being relegated again in 1988. The club bounced back immediately by winning the Second Division championship in 1988–89.
After a long-running legal battle, Bates reunited the stadium freehold with the club in 1992 by doing a deal with the banks of the property developers, who had been bankrupted by a market crash. Chelsea’s form in the new Premier League was unconvincing, although they did reach the 1994 FA Cup Final. It was not until the appointment of former European Footballer of the Year Ruud Gullit as player-manager in 1996 that their fortunes changed. He added several top-class international players to the side, as the club won the FA Cup in 1997 and established themselves as one of England’s top sides again. Gullit was replaced by Gianluca Vialli, who led the team to victory in the League Cup and the Cup Winners’ Cup in 1998, the FA Cup in 2000 and the UEFA Champions League quarter-finals in 2000. Vialli was sacked in favour of another Italian, Claudio Ranieri, who guided Chelsea to the 2002 FA Cup Final and Champions League qualification in 2002–03.
In June 2003, Bates sold Chelsea to Russian billionaire Roman Abramovich for £140 million, completing what was then the biggest-ever sale of an English football club. Over £100 million was spent on new players, but Ranieri was unable to deliver any trophies, so he was replaced by Portuguese coach José Mourinho. Under Mourinho, Chelsea became the fifth English team to win back-to-back league championships since the Second World War (2004–05 and 2005–06), in addition to winning an FA Cup (2007) and two League Cups (2005 and 2007). In September 2007 Mourinho was replaced by Avram Grant, who led the club to their first UEFA Champions League final, in which they lost on penalties to Manchester United. Grant was sacked days later and succeeded by Luiz Felipe Scolari in July 2008.