Former Chelsea and Leeds United owner Ken Bates has died at the age of 94.

Chelsea announced the death of Bates on Saturday, saying he "passed away peacefully in Monaco this morning surrounded by his wife and family".

Bates bought Chelsea for £1 in 1982 when they were in the old Second Division, taking on debts of £1.5m, and set about turning around their fortunes.

He eventually sold the club to Roman Abramovich in 2003 in a deal worth £140m when they were in the English top flight.

The club were heavily in debt when Bates sold his shares. He stayed on as chairman at Stamford Bridge before stepping down in 2004.

Chelsea said in a statement: "It is with great sadness that we share the news of the loss of Ken Bates, former owner and chairman of Chelsea Football Club.

"The club sends our heartfelt condolences to Ken's wife Suzannah, the rest of his family and his friends.

"Ken's determination to fight for Chelsea when times were tough, and drive the team on to winning trophies will never be forgotten."

"The thoughts of everyone at Leeds United are with the family, friends and former colleagues of Ken at this difficult time," a Leeds statement said.

John Neal, John Hollins, Bobby Campbell, Ian Porterfield and David Webb served as managers under Bates before he appointed Glenn Hoddle, Ruud Gullit, Gianluca Vialli and Claudio Ranieri.

It was under Gullit that Chelsea ended their 26-year wait for a major trophy when they won the FA Cup in 1997.

The Blues also won the League Cup, European Cup Winners' Cup and the FA Cup again before Bates sold to Abramovich in 2003.

In his early years at Stamford Bridge, Bates fought off interest from property developers and formed the Chelsea Pitch Owners group to safeguard the ground's future.

The Chelsea Supporters' Trust said it was "deeply saddened" to learn of the passing of Bates, who was also Leeds' owner from January 2005 to December 2012.

"Ken was one of the most significant figures in Chelsea Football Club's modern history," the Trust said.

"Taking charge during one of the club's most difficult periods, he played a defining role in securing the club's future at Stamford Bridge and helping lay the foundations for the success that followed.

"His impact on Chelsea will be remembered for generations, and his place in the club's history is assured."

Bates became one of English football's best-known characters, rarely far from the headlines.

In the announcement of his death, Chelsea described Bates as "colourful, outspoken and controversial".

While he safeguarded the future of Stamford Bridge, he also built a high perimeter fence around the pitch when football hooliganism was at its height in the 1980s, but he was refused permission to electrify it by the local council.

He spent five years on the Football League management committee from 1986 and was an active member of the Football Association executive in the 1990s.

Bates also oversaw plans to rebuild Wembley and was appointed chairman of Wembley National Stadium Ltd.

After resigning from that role because of what he considered a lack of progress and support, Bates was quoted by the Telegraph as saying the best way to move the Wembley project forward would be to shoot the minister for sport at the time, Kate Hoey.

Later, having failed in a bid to invest in Sheffield Wednesday, Bates bought Leeds United and his eight-year tenure was less successful than his reign had been at Chelsea - where the Abramovich era would deliver Premier League and Champions League glory.

Leeds had five managers during the Bates years, including former Chelsea captain Dennis Wise, and lost in the Championship play-off final in 2006. A year later Leeds went into administration and were relegated to English football's third tier for the first time.

Bates was part of a consortium that bought the club back from the administrators and Leeds returned to the Championship in 2010.

Although Bates sold his stake in Leeds towards the end of 2012, he stayed on as chairman and then briefly honorary president before leaving in July 2013.

Before buying Chelsea, he had also been chairman of Oldham Athletic for five years in the 1960s and was co-owner of Wigan Athletic from 1980 to 1982.

He spent five years on the Football League management committee from 1986 and was an active member of the Football Association executive in the 1990s.

He quit his Football League role soon after Chelsea were fined £105,000 for alleged illegal payments to players.