August 5 – La Liga has agreed a €2.7 billion cash injection with private equity firm CVC who will take a 10% stake in a new company set up to handle LaLiga’s commercial business.
The deal – given the tagline ‘Boost LaLiga’ – values the Spanish league at €24.25billion.
LaLiga said the money will be used to “to fulfil its transformation strategy to become a leading global player in the digital entertainment market”, as well as driving the growth in fan numbers globally and improving the digital fan experience.
Clubs will receive about 90% of the funds, but spending the money will be subject to restrictions: 70% on infrastructure improvements, 15% at maximum on player acquisition and a further 15% to finance debts. La Liga also stressed that it will maintain control over sporting issues as well as the sale of television rights.
The agreement was approved unanimously yesterday (Wednesday)by the LaLiga Executive Committee (Comisión Delegada) and will now be put forward to the league’s general assembly for approval.
The new money will be welcomed by clubs in Spain, whose revenues have been battered by the coronavirus pandemic and a stagnation in the value of broadcast rights.
As well as providing money for clubs, €100 million will be earmarked for other football in Spain, including women’s football, semi-professional and non-professional football, and will be administered alongside the Spanish FA (the Royal Spanish Football Federation) and Spain’s Higher Sports Council.
“The resources provided by the agreement between CVC and LaLiga will also have a multiplier effect, not only in the world of football, but also in its contribution to building Spain’s image abroad via Brand Spain, in creating jobs for the sector and in attracting talent,” said a LaLiga press release.
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