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TUE 24 AUG 2021 | NEW DEALS
The "historic agreement" between LaLiga and CVC will allow the competition and the clubs to boost their global growth
The "historic agreement" between LaLiga and CVC will allow the competition and the clubs to boost their global growth
  • The partnership with CVC, a global investor with experience in sports organisations, gives important backing to the strategy which will allow LaLiga and the clubs to accelerate their growth.
  • As part of the agreement, CVC will inject around €2.1 billion through LaLiga, 90% of which will go to the clubs.
  • The objective is for LaLiga and its clubs to become a global entertainment company with much closer relationships with the fans in order to offer them the best experiences.

LaLiga has reached a historic agreement with the international investment fund CVC to inject in the region of €2.1 billion into Spanish football. This ambitious plan, called Boost LaLiga, will provide LaLiga and the clubs with the funds needed to forge ahead with the transformation into a global digital entertainment company which strengthens the competition and offers fans better experiences.

Developing a new business model

This agreement seeks to lead the change that the world of entertainment is undergoing and bolster to the greatest possible extent all of the growth opportunities available to the clubs to develop a new business model which will allow them to diversify and intensify their revenue generation and marketing models.

This involves moving from the current single-product model, revolving almost exclusively around matches and the sale of audiovisual rights, to a multi-product/multi-experience model, with direct fan relationships, based on technology and digital and analytics capabilities.

CVC, a working partner of LaLiga and the clubs

The agreement between LaLiga and CVC is a milestone with no global precedent and one which represents the greatest boost to Spanish football in its history by allowing it to commit, in conjunction with an internationally renowned strategic industry partner, to a long-term plan. However, LaLiga's sporting powers and its powers to organise and manage the marketing of audiovisual rights will remain intact.

CVC's contribution to this project will include all of its financial might, its management capacity and its expert knowledge regarding the development of sports businesses gleaned from its extensive 25 years of experience in international rugby, volleyball, tennis, MotoGP and Formula 1 competitions, as well as its relationships with key technology partners for launching the specific projects included in the plan.

How can the clubs spend the funds?

Ninety percent of the money provided by CVC will go directly to the clubs, as well as supporting women's football, and semi-professional and non-professional football through the Spanish Football Federation and the High Council for Sport. It is, therefore, an inclusive, equitable and democratic strategic agreement, which not only secures the financial viability of all Spanish football clubs, but also heralds a new present and future by allowing them to advance in their development.

The agreement will encompass the clubs that have approved the operation, and they will receive a sum of almost €2.1 billion. These clubs are committed to spending 70% of the funds which they receive within the scope of this project on investments linked to the development of their infrastructure and technological innovation, and may use an additional 15% to register players and another 15% to restructure their financial debt.

Project greenlighted at LaLiga's General Assembly

Following the unanimous approval of the agreement by LaLiga's Delegate Commission, the approval of the clubs was required. At LaLiga's General Assembly, where representatives of all of the member clubs met and had the opportunity to democratically express their position by exercising their secret voting rights, they ratified their support for the Boost LaLiga project.

It is important to note that the agreement has been approved by 38 of the 42 clubs which make up LaLiga. As such, LaLiga's decision-making body has given the green light to move ahead with the ambitious investment plan which, in short, will lead to the professionalisation of the clubs and provide for a more attractive competition, with better facilities, better players and an enhanced fan experience.

"We're convinced that Boost LaLiga is the answer to the challenges we have to face in the medium and long term. It's a strategic agreement which will equip our clubs with greater capabilities, it will transform their management models and it will allow us to have a much more attractive competition. It's the boost that LaLiga needs to turn it into a global digital entertainment company," assures Javier Tebas.

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