Spain’s LaLiga have announced a strategic agreement with leading global investment fund CVC Capital Partners that will see a cash injection of $4.3 billion (AUD) into the competition and its clubs.
The ambitious agreement, “Boost LaLiga”, was approved this week by the league’s Executive Committee (Comisión Delegada) and will be proposed to the league’s general assembly.
The aim of “Boost LaLiga” is to provide the league and its clubs with all of the necessary resources to fulfil its transformation strategy and become a leading global player in the digital entertainment market, while at the same time bolstering the competition and transforming the fan experience.
In a coordinated effort between LaLiga and its clubs, the league will target greater direct interaction with fans, investment in the brand, the sport and in the internationalisation of both.
The transaction values LaLiga at $39 billion (AUD), a price tag that acknowledges the Spanish top-flight’s leadership as one of the most prominent sports competitions in the world, as well as recognising its growth potential through a greater digital presence.
Stadium closures and rebates to broadcasters during the pandemic combined to drag La Liga revenue down 8% to $5 billion in the 2019/2020 season, according to Deloitte’s latest annual review of the sport, with lockdowns having extended into the more recent campaign.
90% of the $4.3 billion proposed to be invested by CVC Funds will be earmarked for the clubs, including women’s football, semi-professional and non-professional football under the guidance of the Royal Spanish Football Federation and the Higher Sports Council (more than 100 million Euros).
The strategic agreement endeavours to be an inclusive, equitable and democratic one that not only bolsters the economic viability of all Spanish football clubs, but also opens up a new present and future for them by allowing them to advance in their development and transformation by at least a decade.