© Reuters. FILE PHOTO: Soccer – La Liga Santander – Atletico Madrid – Huesca – Wanda Metropolitano, Madrid, Spain – April 22, 2021 General view of the stadium before the REUTERS / Sergio Perez game
MADRID (Reuters) – Spain’s top football league has in principle agreed to sell 10% of its business to private equity firm CVC Capital Partners for 2.7 billion euros (3.21 billion US dollars) to support its long-term Fund growth plans, a source close to La Liga said on Wednesday.
First reported by the New York Times https://nyti.ms/3ijT1S0, the deal values La Liga at around € 24.2 billion and will fund structural improvements while offsetting some of the immediate effects of COVID-19, so the source said.
With the surge from the investment, the Spanish league is hoping to match or outperform the English Premier League’s business in the next six to seven years, the source added.
The sale still requires a nod from the board and clubs of the league. If approved, it could help insolvent teams like FC Barcelona prop up stalled finances that have taken another blow from the pandemic.
CVC did not immediately respond to a Reuters request for comment after business hours while La Liga was unavailable.
The private equity company started talks last year as part of a consortium to participate in the media business of the top Italian football league. The deal failed after objections from some football clubs.
La Liga representatives and CVC have met with club officials to secure their support, executives told NYT, adding that the deal is still ongoing.
Earlier this year, La Liga partnered with Microsoft Corporation (NASDAQ 🙂 to increase the revenue of its football clubs hit by a pandemic and to revive a fan base that is consuming more and more digital products.
($ 1 = 0.8424 euros)
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