LaLiga agrees to enter the CVC venture capital fund with 10% for 2,700 million
LaLiga confirmed this Wednesday a "strategic agreement" with the CVC venture capital fund to inject 2,700 million euros into the competition and the clubs. This "ambitious investment plan" will allow "to provide LaLiga and the Clubs with resources with the aim of continuing the transformation towards a global digital entertainment company, strengthening the competition and transforming the experience of the fans", indicated the organization of the maximum Spanish soccer competition in a statement.
The operation will be carried out 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 from this new society its sports competitions and the organization and management of the commercialization of audiovisual rights ”.
The transaction values LaLiga at 24,250 million euros, "an assessment that recognizes LaLiga's leadership as one of the most outstanding sports competitions worldwide, as well as its growth potential" through a greater digital presence focused on direct interaction with fans, investment in a sports brand and project and internationalization.
"This is a higher assessment than that which has been considered in other projects with similar characteristics, which recognizes the great work carried out by LaLiga to date." The valuation is higher than the current market capitalization of Ibex companies such as Telefónica, Endesa, Caixabank or Repsol.
This agreement, which arrives a few months after truncating the European Super League promoted by the richest clubs on the continent, its objective is to “lead the transformation that the entertainment world is experiencing and maximize all the growth opportunities that the Clubs have to develop a new business model that allows them to diversify and intensify the income generation and commercialization models, accelerating their 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 capabilities and analytics ”.
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 "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 entity chaired by Javier Tebas.
The resources provided by the agreement between CVC and LaLiga will have "a multiplier effect not only in the world of football, but also in the ability to create a Spain brand, as well as in creating jobs for the sector and attracting talent."
CVC contributes 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 and their relationships with essential technological partners ”, underlines LaLiga.