Salem Radio Network News Wednesday, September 22, 2021

Sports

Spain’s La Liga agrees to sell 10% stake to CVC for $3.2 billion – source

MADRID (Reuters) -Spain’s top soccer league has agreed in principle to sell 10% of its business to private equity firm CVC Capital Partners for 2.7 billion euros ($3.21 billion) to help finance its long-term growth plans, a source close to La Liga said on Wednesday.

The deal, which was first reported by the New York Times https://nyti.ms/3ijT1S0, values La Liga at around 24.2 billion euros and will fund structural improvements while also offsetting some of the immediate impact from COVID-19, the source said.

With the boost from the investment, the Spanish league hopes to match or exceed the English Premier League’s business in the next six to seven years, the source added.

The sale still requires a nod from the league’s executive committee and clubs. If approved it could help cash-strapped teams including FC Barcelona shore up faltering finances that were dealt a fresh blow by the pandemic.

CVC did not immediately respond to a Reuters request for comment after business hours, while La Liga was not reachable.

The private equity firm, as part of a consortium last year, entered talks to buy a stake in the media business of Italy’s top soccer league. The deal fell through following objections from some soccer clubs.

La Liga representatives and CVC have been meeting with club officials to secure their backing, executives told NYT, adding that the deal has not been finalized.

Earlier this year, La Liga expanded its partnership with Microsoft Corp in a bid to boost revenue for its pandemic-hit soccer clubs and re-energise a fanbase that is consuming ever more digital products.

($1 = 0.8424 euros)

(Reporting by Aishwarya Nair in Bengaluru and Nathan Allen in Madrid; Editing by Ramakrishnan M. and Stephen Coates)

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