LaLiga has confirmed that it has reached a strategic agreement with the international investment fund CVC to inject 2,700 million euros into the competition and the clubs and with the aim of continuing the transformation towards a global digital entertainment company, informs the club management in a statement.
The operation, which is submitted for ratification this Wednesday in the LaLiga Delegate Commission and the Investment Committee of the investment fund, 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 about 10 percent of the capital.
Additionally, CVC contributes funds to LaLiga through a participating account, a long-term agreement that aligns the interests of LaLiga, the Clubs and CVC. In addition, LaLiga “will keep intact“of this new society its sports competitions and the organization and management of the commercialization of audiovisual rights.
The transaction places the value of LaLiga at 24,250 million euros, which recognizes, in the opinion of the employer, its “leadership” as one of the sports competitions “most prominent 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 agreement intends that LaLiga lead the transformation that the entertainment world is experiencing and maximize all growth opportunities clubs have to develop a new business model that allows them to diversify and intensify income generation and marketing models, accelerating their digital transformation.
The transformation must go from the current model monoproduct, based almost exclusively on the party and the sale of audiovisual rights, to a multi-product and multi-experience model, direct relationship with the hobbyist, based on technology and digital and analytical capabilities.
Improve the experience
Investment in improving competition will have a direct impact on the improving the experience and growing 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 they will directly focus 90 percent on the clubs, including also women’s football, semi-professional and non-professional football hand in hand with the Royal Spanish Football Federation (RFEF) and in the Higher Sports Council (CSD), which will be equivalent to more than 100 million euros.
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 ‘brand Spain’, as well as in the creation of employment for the sector and in attracting talent, stressed the employer.
For the implementation of this strategic plan football clubs make a commitment to use the investment they receive to boost their own Development Plan agreed with LaLiga, which includes sports strategy, infrastructure, international development, brand and product development, communication strategy, innovation, technology and data plan, and content development plan on digital platforms and social networks.
CVC brings to this project its financial potential and 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, MotoGP competitions and, among other championships, that of Formula 1.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.