In a moment of tightening the belt for the football industry, LaLiga has closed an agreement for the injection of 2,668 million euros. The operation, closed with the CVC international fund, cedes 11% of the Spanish football business through the creation of a new company to which non-audiovisual activities will be transferred. That is, sponsorships, licenses, technology businesses and LaLiga Business School, as confirmed by the club association on Wednesday. This represents a ball of oxygen for Spanish clubs, lacking liquidity due to the coronavirus crisis. The deal values LaLiga’s business at more than $ 24 billion.
It is a unique operation in the world, since it is the first time that a European football league has sold a stake in its business to an investor, according to sources familiar with the negotiation. The common goal of LaLiga and CVC is for the competition to be the world’s premier soccer league, equaling or surpassing the Premier League. “The agreement will allow keeping intact the sports competitions and the organization and management of the commercialization of audiovisual rights,” says LaLiga, which thus maintains control of the clubs’ main source of income.
The agreement, which is expected to be ratified this Wednesday by LaLiga’s Executive Committee and CVC’s Investment Committee, is “designed to drive the global growth of LaLiga and its clubs, continuing the transformation into a global digital entertainment company. ”, As added by the body chaired by Javier Tebas in a statement.
Of the amount that LaLiga will receive, 2.46 billion will be dedicated to participating loans to clubs with a 0% interest over 40 years. The teams, yes, commit to dedicate this economic injection to investments in strategic areas (sports strategy, infrastructure, international development, brand and product development, communication strategy, innovation plan, technology and data, and development plan of content on digital platforms and social networks.). There will also be up to 107 million to the Royal Spanish Football Federation and the Higher Sports Council for women’s football, semi-professional and non-professional football.
“It is an inclusive, equitable and democratic strategic agreement, which not only shields the economic viability of all Spanish football clubs, but also opens a new present and future for them by allowing them to advance in their development and transformation for a decade,” he says. the association of clubs. This injection comes at a crucial moment after the reduction of 30% in revenues in the last season and a half due to the absence of public in the stadiums since the start of the pandemic, which has left some clubs in a critical financial situation .