In early August 2021 when it was announced that La Liga had
agreed in principle for CVC to inject €2.7 billion into its clubs and the
competition itself. This “LaLiga Impulso” money was to be spent mostly to
improve infrastructure and off-field business areas. In return, CVC would
receive a 10 per cent share of La Liga’s TV revenues in a partnership that was
to run for 50 years and valued La Liga at €24.25 billion.
The vast majority of the cash injection was to go directly
to the clubs. Seventy per cent of the funds would have been ring fenced for
long-term investments in physical and professional infrastructure, 15 per cent
could pay off or refinance debts, and only 15 per cent could be used for
improving squads through player wages or transfer fees.
A new holding company was also to be formed to control all
of La Liga’s business activities, with CVC Partners having a share in this
joint-venture. La Liga kept this share below 10 per cent, while it also would
have six of the eight board seats.
Real Madrid immediately made clear that they were dead
against the deal, which they thought was both bad value and of little use to
them. Madrid’s rejection of La Liga Impulso was no surprise to anybody
who has been following Spanish football politics. The Bernabeu club has
generally been fighting the league since Tebas pushed through the collective
sale of broadcast rights in 2015. Madrid have taken more than 50 different
legal actions against La Liga proposals in the Spanish courts in recent years,
all defending the club’s own interests.
In the end, despite media reports that many clubs were
wavering and would vote against, there was no big drama. Thirty-seven of
the 42 clubs voted in favour. Fifteen per cent of the total money being
available to pay off or refinance debts will be very welcome for clubs who have
needed to open credit lines during the pandemic, for instance.
By now, the total sum involved was €1.994 billion, adjusted
down due to those clubs who were staying outside. CVC was now taking 8.2 per
cent of the new holding company set up to manage La Liga’s business interests.
It would also get 8.2 per cent of net income from TV each year over the next
five decades.
Madrid just do not see the CVC deal as good for them as they
are already a huge global brand, with financing sorted for their stadium
rebuild, their own TV channel and dozens of staff working on sponsorships and
digital marketing. They are especially against giving up a share of their
future TV revenues over the coming decades.
Barcelona’s rejection of the CVC deal was a bit more
nuanced. They have many of these super-club advantages already and building up
potential challengers to their status is perhaps not in their interests either,
given their current weaknesses on and off the pitch.
Hanging over everything is the Super League project, which
both Clasico clubs are still trying to keep alive via a legal challenge
to UEFA in the European courts.
The money is not divided equally among all clubs — instead,
each gets a percentage based on the TV revenues received over the last seven
years, which itself is based on a complicated formula involving historic
performances and size of fanbase. Atletico
Madrid are due the most at almost €200 million. Established Primera clubs Real
Sociedad, Villarreal and Betis will receive around €100 million, smaller
outfits Getafe, Alaves and Levante about €70 million, and yo-yo clubs Mallorca,
Elche and Rayo Vallecano get €25-30 million.
La Liga is keen for the clubs to look longer term and make
plans for the 70 per cent that must go on infrastructure. The most obvious use
of funds, and biggest outlays, will be on stadium improvements. Sevilla,
Valencia, Rayo Vallecano, Mallorca, Granada, Getafe, Elche and Alaves are among
the clubs who will use CVC money on their stadia, with a focus on improving
facilities to increase revenues.
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