Spanish football faces its third great revolution

League and clubs will sign the final agreement to partner with CVC at the end of September and create a company that will last 50 years, although the investment fund estimates that it will remain between 5-10 years before selling its part to another fund. About ‘LaLiga Impulso’ there has been much talk about the rain of millions (about € 2,100M to be distributed between clubs and to return in 40 years) and the rejection and non-adherence of Madrid, Barça and Athletic. The employers insist on focusing on the transformation that it will entail. They consider it their third revolution and impulse, after the centralized sale of TV rights, economic control and international expansion.. They call it LaLiga 3.0.

The fan is the key for clubs facing imminent threats (sale of audiovisual rights in a declining market, with new platforms and with greater sports competition from other leagues). To face it, they are looking to expand their international brand (duties that Madrid and Barça have done and from what CVC understands that they do not want to join). They give an example to the Premier and Manchester United, who for many years were without winning titles in Europe or having a Golden Ball in their competition and their income has not been diminished and they have continued to grow due to the brand work carried out. What’s more, Information is power and if clubs know what the fan likes, how they consume and when (depending on their country or culture), they can increase their revenue from sponsorships and commercials. A section where the Premier and the Bundesliga enter more than LaLiga, according to a study presented by CVC to clubs and media.

The clubs have a broken sheet to follow for their growth, in which points they should improve and which companies can advise them, Also, how they should invest the money they receive from CVC (40% in October and then 20% each June until 2024): 70% of the money must be invested in infrastructure and expanding your brand. This expense should cause an increase in income in 4 years, which is when the work of these years is expected to bear fruit. The remaining 30% will be divided to pay debt and transfers (15% for each concept). Although they leave the possibility that these percentages vary. If a club requests to allocate part of 70% to pay debt, LaLiga could approve it. Since it will supervise each investment from a department that will be created specifically to monitor each movement. LaLiga has not wanted to let all the money be spent on transfers and salaries, since it would create an inflation in the market to which they could not respond in four years, when that money runs out.

Other points in which the partners share to grow internationally they are the tours (such as the Miami game) and the arrival of foreign players to the teams. A new bet is ruled out, such as the arrival of Saudi players in the 2018 winter market and that was not successful. But yes sign foreign players of a certain level that give teams a presence in Asian countries (such as Wu Lei or Kubo) or other interesting geographical areas for expansion. The example they put is Fernando Alonso with Formula 1 or Gasol in the NBA. The value of the TV rights of both competitions was very low in Spain until both athletes arrived and they aroused national interest. That is the formula that they want to continue exploiting in football.

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TV rights are key. CVC estimates that in Spain two million homes are left without football as it is broadcast on only two platforms. LaLiga intends to diversify the sale of the coming months to be in more than 4 million homes. From the investment fund they insist that the policy carried out has caused that there are fewer young Spaniards who are interested in football. And the fan is the key. IInternationally, the focus will be on the United States, Russia, China and fighting to steal hegemony from the Premier in other areas that are even. CVC does not have room for maneuver for the national sale of TV rights, but it will be able to work towards the success of the international sale in the coming years. The investment fund has a great interest in these assets of the clubs growing, since in the agreement it will receive 11% of the income from LaLiga’s non-audiovisual businesses and 10.95% from audiovisual businesses in the next 50 years.

CVC has valued LaLiga at 24,250 million euros and expects that in the next five years it will grow to 30,000M. Something important if you want to sell your stake in the LaLiga Impulso holding to another investment fund, which must meet some prerequisites that it has already agreed with Tebas and the clubs. Of course, CVC guaranteed in a meeting with the media that while it is with LaLiga Impulso it will not be associated with any other competition.

The LaLiga and CVC agreement created controversy in the RFEF, who criticized it. One of the reasons is Rubiales’ interest in modifying the format, something that the investment fund does not see favorably. CVC will not interfere in these functions, in which they have no maneuver, but in the impact it could have on audiovisual rights. If such a decision were given of what they consider to be “loaded” with the competition, they could leave the partnership with LaLiga.

2026 and 2027 are marked in red. If the plan works, the income of the clubs will grow 100M € that year, without the agreement it was expected to lose 400. Ahead, there are 4-5 years of work for the revolution to be a success.

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