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2,700 million for the clubs, but with a distribution set by LaLiga

The departure of Messi and the refusal of Real Madrid and FC Barcelona put in check the operation ratified unanimously in the Delegate Commission of Spanish clubs is one of the most important agreements signed in the sports entertainment industry belgium embassy islamabad email address. The injection of 2,700 million euros from CVC is the culmination of a process that LaLiga has been developing for months in which it has been negotiating with other entities to, for example, sell a stake in LaLiga Tech, its digital business unit , but where much smaller figures were handled.

Of the 2,700 million that the company will receive, 90% will go to the clubs that are part of LaLiga, that is, the First and Second Division teams, the two categories that are considered professionals. The remaining 10% will go to the expansion of the brand, as well as to women’s, semi-professional and amateur football, which will obtain 100 million that will be managed by the Royal Spanish Football Federation and the Higher Sports Council.

To distribute the 90% that the teams will take, a criterion similar to that used for the distribution of television rights will be used, which is the classification in recent seasons. But the use of capital will not be free by the entities, which must allocate 70% to investments in infrastructure, international development, brand and product improvement, communication strategy and content programs on digital platforms and social networks.

This will be the central axis of LaLiga’s new strategy, focused on creating an environment of entertainment and consumption similar to that of competitions such as the Premier League, which helps to revalue the value of clubs, which in turn would mean an increase in sponsors or the attraction of the footballing assets of the first order.

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In addition, of that 70%, the clubs will have 15% to alleviate the debt or losses caused by the pandemic and another 15% destined exclusively to increase the salary limit of the workforce. This cap, set by LaLiga itself, and which takes into account sporting and economic aspects, is the one that is making it difficult to register certain players who receive salaries that are too high to fall within the expected maximums. This parameter is controlled and reviewed in detail by LaLiga, which will impose a strict use of funds.

The capital will be transferred to the different sports entities in the form of a 40-year soft loan, with an interest rate of 0% so that the tax burden is lower than if it were recorded as extraordinary income. Likewise, due to their consideration as participating loans, the additional contribution from CVC will be considered as equity, so it will not appear in the debt section in the financial balance sheets.

“We have one of the best football competitions, with a worldwide impact, but there are challenges in the short term that must be faced urgently and that require a significant financial investment,” declared Javier Tebas before the Delegate Commission of First-Class clubs. and Second Division that closed the 2020/2021 financial year with joint losses of 733 million euros, according to the consulting firm PWC, due to the fall in total revenues of 30%, to 3,545 million euros. However, the President of LaLiga highlighted the valuation of 24,250 million euros that CVC has made of the businesses of the Spanish competition, “higher than that considered in other projects with similar characteristics, which recognizes the great work carried out” socialposts .

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