La Liga with agreement to sell 10% stake to CVC for 2.7 billion – Sport


La Liga, the Spanish professional football league, confirmed this Wednesday the existence of an agreement with CVC Capital Partners, which involves the injection of 2.7 billion euros “in the competition and in the clubs”. In exchange for this amount, CVC will hold a 10% stake in the Spanish league.

In a statement, La Liga explains that this operation will allow “to continue the transformation into a global digital entertainment company, strengthening competition and transforming the experience for fans”.

It is detailed that the operation will be carried out “through the creation of a new company”, where CVC “will hold a minority interest of approximately 10% of the capital”. The note also details that La Liga “will keep intact its sporting skills and the organization and management of the commercialization of audiovisual rights in this new society”. This operation values ​​La Liga at around 24.2 billion euros. The Spanish league anticipates that, if the operation receives the green light from the executive committee and the clubs, it will also ease some of the effects felt by the covid-19 pandemic.

It is explained that, of the 2.7 billion, around 90% will revert to clubs, also including women’s football, semi-professional and non-professional football from the Spanish Football Federation and the Superior Council for Sports. “It is, therefore, an integrative, egalitarian and democratic strategic agreement, which not only protects the economic viability of Spanish football clubs but also opens up a new present and future that allows a decade to advance in development and transformation.”

This year, La Liga has already expanded its partnership with Microsoft to generate new revenue for football clubs, which saw revenue retreat during the covid-19 pandemic.

CVC has been active in business in the Iberian Peninsula. This Saturday, July 31, Sonae announced the sale of 24.99% of Continente to CVC, for an amount of 528 million euros.

Source: Jornal de Negócios by www.jornaldenegocios.pt.

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