LaLiga sells 10% of its business to CVC for 2,700 million

LaLiga gives access to venture capital to fund its development. Today announced the Director of the main Spanish football competitions An agreement with the British fund manager CVC Capital Partners to pump 2,700 million euros into the entity and clubs.

The operation, which is estimated to be worth 24,350 million euros, will be carried out through it Creation of a new company in which LaLiga contributes all its business and its subsidiaries and Join the adventures In which CVC will acquire a stake of about 10%.. LaLiga will maintain its sports competitions and organize and manage the marketing of audiovisual rights, the entity headed by Javier Tebas indicated.

The CVC will contribute funds to LaLiga through a participating account. 90% of the funds, as detailed by LaLiga, will be concentrated in clubs, including women’s football, semi-professional and non-professional football from the hands of the Royal Spanish Football Federation (Rfef) and in the Superior Sports Council, with more than €100 million.

Clubs must allocate the funds received to promote a development plan agreed with LaLiga, which should focus on areas such as sports strategy, infrastructure, international development, brand and product development, communication strategy, innovation plan, technology and data, and a content development plan. On digital platforms and social networks. “All of this includes sustainability, good governance and diversity as core values ​​of the model”I need LaLiga.

CVC, one of the world’s largest fund managers, has more than 25 years of experience in the sports sector, with involvement in international rugby, volleyball, tennis, Moto GP and Formula 1. In November, for example, Series A gave the go-ahead to sell a company CVC and Advent International for €1,700 million from 10% of the company that will exploit the audiovisual rights of Calcio, in a process very similar to that of LaLiga.

The director was established in 1981 as the European arm of Citicorp Venture Capital, which was in turn founded by the American bank Citibank in 1968. The company’s portfolio includes companies such as Breitling (luxury), Douglas (fragrance distribution), Tendam (Fashion), and Naturgy (energy ), Petco (pets) or Fast Logistic. The company is led in Spain by Juan Arbid.

In sports, CVC acquired more than 65% of Formula 1 at the end of 2005, a company that it abandoned in 2016. In the same year, the Group acquired private equity It has captured 28% of the Guinness Rugby League 14, two years after entering with a minority stake in Premier League Rugby, the British league for the sport. CVCs are also involved in other management companies: in 2019, for example, Bruin Sports Capital (driven by a former IMG executive who specializes in sports) entered into a $600 million injection with another fund management company, Jordan Inc.

Objectives

This agreement aims to lead the transformation of the entertainment sector and maximize all growth opportunities that the clubs must develop a new business model that allows them to diversify and intensify their income generation and business models. Accelerate your digital transformationLaLiga says.

The facility confirms that the evaluation was achieved by its assets “It recognizes LaLiga’s leadership as one of the world’s most exclusive sports competitions, 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, in a coordinated effort between LaLiga and clubs.”

LaLiga details it wants to move “from its current mono-product model, which is almost exclusively based on the game and the sale of audiovisual rights, to multi-product or multi-trial model, The direct relationship with the fan, based on technology and digital and analytical capabilities.” To do this, he indicated that the technological capabilities of the LaLiga and clubs’ ecosystem will also be strengthened and will offer new content, new channels and new markets.

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