Salem Radio Network News Saturday, September 18, 2021

Business

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

MADRID (Reuters) – La Liga, 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, it said on Wednesday.

The deal values La Liga at around 24.2 billion euros and, if approved, will fund structural improvements while also offsetting some of the immediate impact from COVID-19, the league said in a statement.

“This agreement aims to lead the transformation that the entertainment world is undergoing and to maximise all growth opportunities for clubs.”

Some 90% of the funds raised will be channeled directly to clubs, which must use them to finance investment programmes agreed upon with La Liga.

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, a source close to La Liga added.

The stake sale still requires approval 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.

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.

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 fan base that is consuming ever more digital products.

($1 = 0.8424 euros)

(Reporting by Aishwarya Nair in Bengaluru and Nathan Allen in Madrid; Editing by Stephen Coates and Jason Neely)

Previous
Next

Editorial Cartoons

View More »

Steve Breen
Sun, Sep 12, 2021

X CLOSE