MADRID: The LaLiga general assembly Thursday gave its support to “Boost LaLiga”, the €2.2 billion ($2.58bn) strategic agreement with CVC Capital Partners that will see 10% of the league’s business sold to the private equity firm, despite opposition from Real Madrid and Barcelona.
Through this deal, CVC becomes a partner of LaLiga and its clubs. LaLiga will however retain its sports responsibilities as well as the organisation and management of the marketing of the audiovisual rights.
In the general assembly, 38 clubs, of the 32 required, voted in favour of the project, which last week had received the unanimous approval of the LaLiga’s executive committee.
The notable naysayers, not surprisingly, were LaLiga’s two biggest clubs Real Madrid and FC Barcelona, both of which, not so coincidentally, were key constituents of the disgraced still-born breakaway European Super League.
The clubs that have approved the operation will receive up to €2.668 bn ($3.13bn). These clubs commit to allocate 70% of the resources they receive within the framework of this project to investments related to their development in both infrastructures and technological innovation, with the possibility of an additional 15% for the registration of players and the other 15% for the restructuring of financial debt.
Boost LaLiga is an unprecedented milestone, representing the greatest boost for Spanish football in its history. The project allows LaLiga, with the help of an internationally renowned partner, to execute a long-term strategic plan of investment. Boost LaLiga will provide LaLiga clubs with the necessary resources to improve the competition and the experience of its fans, accelerating clubs´ growth and making LaLiga the world’s leading sporting entertainment provider in the medium term.
The ambitious investment plan aims to boost the professionalization of the clubs and provide a more attractive competition, with better facilities, better players and a better fan experience. All this supported by a competition model that will be more digital, more focused on data generation and analysis, and more international exposure.
90% of the capital invested in Boost LaLiga will go to the clubs. A percentage will be earmarked for other areas of Spanish sport and football, making this an inclusive, equitable and democratic agreement. Boost LaLiga not only shields the economic viability of all Spanish football clubs, but also opens a new present and future for them by allowing them to advance in their development and transformation by a decade.
In the words of Javier Tebas, president of LaLiga, “We are convinced that Boost LaLiga is the answer to the challenges we have to face in the medium and long term. It is a strategic agreement that will provide our clubs with greater capacity, will transform their management model and boost the appeal of our competition. It is the boost we need to turn LaLiga into a global digital entertainment company that has the most attractive football competition in the world.”
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