Unanimously approved 'LaLiga Impulso' that injects € 2,700 million

The LaLiga Executive Committee unanimously approves LaLiga Impulso. "The transaction values LaLiga at 24,250 million euros," the official statement states.

Unanimously-approved-'LaLiga-Impulso'-that-injects-€-2,700-million

Important agreement reached by LaLiga that ensures an economic injection of 2,700 million that will be invested both in the competition itself and in the clubs that participate in it. This has been possible thanks to the international investment fund CVC, which will contribute approximately 10% of the total capital of an operation that "will be executed through the creation of a new company to which LaLiga will contribute all its businesses, subsidiaries and joint ventures. ", as confirmed by LaLiga in an official statement.

"Additionally, CVC provides funds to LaLiga through a participation account, a long-term agreement that aligns the interests of LaLiga, the Clubs and CVC," they add. While "LaLiga will keep intact of this new society its sports competitions and organization and management of the commercialization of audiovisual rights". The 2,700 million euros that the aforementioned investment fund will contribute will be destined to 90% to help Clubs, both male and female, without forgetting semi-professional and non-professional football. In addition, from there, 15% is destined directly to the squads of the teams, as this newspaper has been able to confirm, thus having an impact on cases such as the renewal of Messi or the Mbappé operation. The amounts are distributed according to the television income of the last seven years. It is also one more reason for Real Madrid and Barcelona to resign from the SuperLiga, although LaLiga fears that Madrid and Barça will follow their roadmap due to the commitment acquired with the other 'rebels'.

The operation has gone ahead unanimously in the LaLiga delegate commission, to later go through the Assembly, which will be held on August 12. As AS has learned, "this is not a sale of any kind, but LaLiga launches a new project with another participant (CVC) that contributes its economic muscle to, thus, try to grow faster. This newspaper can confirm that This is not a sale of rights or financing, as CVC runs the inherent risk of the business. " In other words, "if everything goes its way, they will benefit, while they could lose the entire investment if the project did not go as expected: there is no guaranteed amount" .

Likewise, "LaLiga does not put the rights of the clubs at stake, but rather they try to develop a project as an external investor in order, as we say, to speed up the process," add the aforementioned sources. The objective is clear, to strengthen competition and act as a springboard for the development of new growth opportunities for entities. "The transaction values LaLiga at 24,250 billion euros, a valuation that recognizes LaLiga's leadership as one of the most outstanding sports competitions in the world," highlights the statement that we now reproduce in its entirety.

LaLiga statement in full

"LaLiga confirms a strategic agreement with the international investment fund CVC to inject 2,700 million euros into the competition and the clubs. This is an ambitious investment plan that will provide LaLiga and the Clubs with resources with the objective of continuing the transformation towards a global digital entertainment company, strengthening the competition and transforming the experience of the fans.The operation will be executed through the creation of a new company to which LaLiga will contribute all its businesses, subsidiaries and joint ventures and in which CVC will have a minority stake of approximately 10% of the capital. Additionally, CVC provides funds to LaLiga through a participating account, a long-term agreement that aligns the interests of LaLiga, the Clubs and CVC. LaLiga will keep intact of this new society its sports competitions and the organization and management of the commercialization of audiovisual rights.

The transaction values LaLiga at 24,250 billion euros, a valuation that recognizes LaLiga's leadership as one of the most prominent sports competitions worldwide, as well as its growth potential through a greater digital presence focused on direct interaction with the fans, investment in a sports brand and project and internationalization, in a coordinated effort between LaLiga and the clubs. This is a higher assessment than the one that has been considered in other projects with similar characteristics, which recognizes the great work carried out by LaLiga to date.The objective of this agreement is to lead the transformation that the entertainment world is experiencing and to maximize all the growth opportunities that Clubs have to develop a new business model that allows them to diversify and intensify income generation and marketing models , accelerating your digital transformation. Moving from the current mono-product model, based almost exclusively on the game and the sale of audiovisual rights, to a multi-product / multi-experiential model, with a direct relationship with the fan, based on technology and digital and analytical capabilities . To do this, LaLiga is already on the way to becoming a global company, with the best entertainment content, a strong digital presence and the ability to capture and analyze data that allow direct omnichannel interaction with all fans and with a clear focus on optimizing the fan experience.

The investment in improving the competition will have a direct impact on the improvement of the experience and the growth of the number of fans. The technological capabilities of the LaLiga ecosystem and the Clubs will also be strengthened and will offer new content, new channels and new markets.The 2,700 million euros that CVC will contribute will be directly concentrated 90% in the Clubs, including also women's football, semi-professional and non-professional football from the hand of the Royal Spanish Football Federation and the Higher Sports Council (more than 100 million euros). It is, therefore, 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. .

The resources provided by the agreement between CVC and LaLiga will also have a multiplying effect not only in the world of football, but also in the ability to create the Spain brand, as well as in the creation of employment for the sector and in attracting talent.

For the implementation of this strategic plan, the football clubs assume a commitment to allocate the investment they receive to the promotion of their own Development Plan agreed with LaLiga, which will include the following main areas: sports strategy, infrastructure, international development, development brand and product, communication strategy, innovation plan, technology and data and content development plan on digital platforms and social networks. All this incorporating sustainability, good governance and diversity as fundamental values of the model.

CVC brings to this project all its financial potential, its management capacity and its expert knowledge in the development of sports businesses due to its extensive experience of more than 25 years in international rugby, volleyball, tennis, Moto GP, Formula 1 competitions and its relationships with essential technological partners for the implementation of the specific projects of this plan ".

Click here to read the statement



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