MADRID: The LaLiga General Assembly Friday ratified the Boost LaLiga (LaLiga Impulso) project with backing from a large majority of clubs.
The project is a strategic agreement reached with global investment fund CVC (the same one that recently won the bid to own the new Ahmedabad franchise in the Indian Premier League) to promote the global growth of LaLiga and its clubs.
In total, 37 of LaLiga’s 42 first and second division clubs (20 in Laliga, 22 in Laliga Segunda División) voted in favour of the project, which represents a total investment of €1.994 billion for both sporting and business growth initiatives.
The significant names among the five “naysayers” were Spain’s Big 2 Real Madrid and Barcelona, along with Athletic Bilbao, who have all said they will take legal action to block the initiative.
Madrid, Barca and Athletic had in fact written to fellow clubs on December 3 outlining an alternative proposal, which they called “Project Sustainable”. In response, LaLiga president Javier Tebas had termed the offer as “an attempt to break the consensus and generate uncertainty”.
On Tuesday, the three clubs published another open letter, sent to the Spanish Football Federation (RFEF) and Spain’s National Sports Council (CSD), asking them to intervene and prevent what they called an “illegal” and “fraudulent” initiative, ESPN reports.
Coming back to Boost LaLiga, the long-term investment has the stated aim “to help LaLiga and its clubs strengthen their infrastructure, digitalisation, and internationalisation during an uncertain time for the industry” (read negative fallout from the coronavirus pandemic).
The project approved Friday by the General Assembly carves out the clubs that choose not to participate. For the rest, this injection of nearly €2 billion commits the clubs to allocating up to 70% of the funds to investments linked to infrastructure, international development, brand and product development, communication strategy, innovation and technology, and a content development plan for digital platforms and social media. Up to 15% can be used to sign players, with the remaining 15% for reducing debt.
LaLiga President Javier Tebas commented: “This is a new milestone in the history of LaLiga and its clubs. We’re proud to have reached this agreement with CVC, which will allow us to continue our transformation towards a global digital entertainment company, improving the competition and enhancing the fan experience.” Tebas added that “we’ve been able to get this project off the ground. I am confident it will be a watershed positive moment for these 37 clubs. It will mean they will be able to improve their infrastructures for fans to enjoy, develop their international brand and collectively take giant steps to continue improving this league’s stature around the world.”
The clubs involved echoed the thoughts of the President of LaLiga and expressed their delight after the project was given the final green light.
A unique long-term project for clubs
The agreement was ratified today by the General Assembly after Real Madrid, FC Barcelona and Athletic Club requested to opt out in August. Following their decision not to be involved, the project was restructured and has now been approved by 37 of the 42 clubs, excluding those clubs opting out.
Friday’s ratification is the culmination of many months of hard work and exhaustive analysis in search of the best option to support and promote LaLiga clubs, working together with a host of leading firms. The deal was valued by Rothschild & Co and Duff & Phelps for LaLiga and CVC respectively; LaLiga was advised by Uría Menéndez and KPMG, while CVC was advised by Latham & Watkins.
The agreement will consolidate LaLiga’s position among the world’s leading entertainment industry brands, embodying passion, excitement and dynamism like no other competition, and help it continue working towards its ultimate goal: to achieve excellence and to continue offering a quality entertainment product for fans around the world.
