This morning, La Liga announced that CVC Partners have injected €2.7b into a new company in which they will own a 10% stake in, valued at over €24b, which La Liga will run with the aim of growing La Liga exponentially.
Below are some key details of the deal, which is currently sitting on a ‘verbal agreement’ and waiting on a vote among 42 clubs. There are reports in Spain that Real Madrid are not happy with the deal. But given that most (if not all) clubs benefit, it will likely go through.
- The goal of the deal is to strengthen fan experience and expand globally / digitally.
- The league wants to spend money on new channels and new content while expanding to new markets.
- The money will largely be dispersed among clubs. 90% goes to club development, which includes women’s football and semi-pro football in Spain.
- The clubs must allocate the money they receive from the deal towards: “sports strategy, infrastructure, international development, brand development and product, communication strategy, innovation plan, technology and data, content development on digital platforms and social networks,” per La Liga statement this morning.
There are mixed reports about how Real Madrid feel about this deal, but it’s too soon to know. Perhaps they feel, like Juve and Milan did when a CVC / Serie A deal was close, that the valuation was too low. Marca reported today that Barcelona and Real Madrid will receive the biggest cut, but as our own Kiyan Sobhani tweet this morning, there is no confirmation on that yet:
La Liga says they have no information on that part of it yet. So I'd be cautious until we have more details.— Kiyan Sobhani (@KiyanSo) August 4, 2021