Real Madrid, Barcelona, Athletic and Ibiza voted against a project that, in their opinion, mortgages them for 50 years; Cartagena said ‘yes’
There was no surprise, although the matter will end up being prosecuted and can take a long time. The extraordinary general assembly of LaLiga approved this Friday the agreement with the British investment fund CVC that will inject 1,994 million euros in exchange for the value of 9% of the audiovisual rights for 50 years, with the support of 37 of the 42 clubs that it form, the votes against Real Madrid, Barcelona, Athletic and Ibiza and one abstention, that of Real Oviedo. LaLiga also confirmed that the first economic injection, estimated at 400 million euros, will reach the clubs in a few weeks and they will be able to start their projects to improve infrastructure, digitization and internationalization, among others. FC Cartagena, who voted ‘yes’, will receive a total of 6 million euros between now and June 30, 2024.
Finally, the three major opposition clubs, promoters of the alternative Sustainable Project, participated in the assembly and showed their dissatisfaction hours after having unsuccessfully asked the Superior Sports Council (CSD) on Thursday to withdraw it and to announce legal actions since the Government did not do so and declared itself incompetent to make decisions on this agreement.
Therefore, this controversial economic life preserver sponsored by LaLiga president Javier Tebas is not yet closed and may turn around in the coming months and even years. The three clubs, which like Osasuna are not public limited companies and still presume to belong to their partners, assure that their audiovisual rights cannot be mortgaged and they trust that the courts will agree with them and overthrow the project.
The CSD could also ultimately participate in that lawsuit as one of the affected or injured parties, since it participates in part of the income obtained from the sale of audiovisual rights that have a final destination for other modalities and the base sport.
The Barça, telematic presence
In person, the general directors of Real Madrid and Athletic, José Ángel Sánchez and Jon Berasategui, attended the LaLiga headquarters, near Barajas airport, while Mateu Alemany, director of the Barcelona football area, intervened via videoconference.
The commitment to CVC Capital Partners, called LaLiga Impulso, was already presented and endorsed by the clubs in August and unanimously approved by the LaLiga delegate committee. It has been reformulated to be adapted to the participation of the clubs and, as is well known, it involves an investment of 1,994 million in exchange for the value of 9% of the audiovisual rights for no less than half a century.
The clubs that make up professional football undertake to allocate up to 70% to invest in infrastructure, international development, brand and product, communication strategy, innovation plans, technology and content development on digital platforms and social networks. Another 15% will be for the registration of players and the remaining 15% to refinance the debt.
In the case of Efesé, the money will be used to start the works of the sports city and remodel the Cartagonova stadium, with a new scoreboard, VIP boxes, a restaurant, a physiotherapy clinic, new seats and a reform of the main facade. In addition, retroactively, the cost of adapting different interior spaces of the stadium for offices and the opening last summer of the new store on the Cartagonova esplanade will be assumed.
New scenario
According to Tebas, “it is an agreement that will mean a 20-year advance in modernization processes that will benefit all of Spanish sport and place it on a new world stage.” In addition, the top LaLiga leader said that he guarantees the “absence of impact among non-participating clubs.” “Despite all the obstacles we have encountered, we are facing a milestone and we are very proud to have reached this agreement,” he said.
The staging of another battle in Spanish football
Javier Tebas can boast of having won by a landslide despite the firm opposition of such powerful clubs as Real Madrid, Barcelona and Athletic, who came to present in the last week the alternative Sustainable Project, which would provide the same amount of money to the clubs Through a loan from JP Morgan, Bank of America and HSBC to be repaid in 25 years and in what they considered better conditions.
The arguments of the so-called rebels only managed to convince Ibiza, which voted against, and make Oviedo abstain. Whites, Barça and Bilbao reject their share of the millions, around 700, in exchange for not giving up part of their television rights for 50 years. For this reason, LaLiga Impulso has had to readjust. In this new formula, CVC maintains its valuation of the Spanish competition at 24,250 million, but reduces its rain from millions to 1,994.
The signing clubs will receive this money in four payments: 40% after signing the contract (about 400 million euros); 20% in June 2022, another 20% in June 2023 and the last payment, also 20%, in June 2024. By that date it is expected that the clubs will have managed to transform their infrastructure, strategy and develop their brand to increase your income.
While waiting for what the judges decide, since the opponents insist that they will appeal to ask for his annulment, Tebas comes out unscathed in the first instance of another of the many battles that have characterized Spanish football in recent years. A confrontation with special virulence in recent days due to the crossing of communications and accusations between the employer’s association, the great Spanish clubs, the Luis Rubiales federation and the CSD, which for now is inhibited because it has no other option after consulting with the State Attorney .
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