Thread by @infosfcb

LONG THREAD | ⬇️
𝐄𝐕𝐄𝐑𝐘𝐓𝐇𝐈𝐍𝐆 𝐲𝐨𝐮 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐂𝐕𝐂-𝐋𝐚𝐋𝐢𝐠𝐚 𝐝𝐞𝐚𝐥 𝐚𝐧𝐝 𝐰𝐡𝐲 𝐁𝐚𝐫𝐜𝐞𝐥𝐨𝐧𝐚 𝐚𝐧𝐝 𝐑𝐞𝐚𝐥 𝐌𝐚𝐝𝐫𝐢𝐝 𝐚𝐫𝐞 𝐚𝐠𝐚𝐢𝐧𝐬𝐭 𝐢𝐭

Buckle up!

[1/21]

🔹La Liga & CVC Capital Partners, a private equity and investment advisory firm, recently agreed (verbally) upon a €2.7 billion deal, selling 10% of La Liga's stake.

🔸La Liga lost a fortune due to the #COVID19 pandemic & this forced them to accept private investments.

[2/21]

🔹For the first time, private equity will be running a major Football League.

🔸Earlier this year, the European Elite clubs got together and formed the Super League with the help of a similar investment deal with JP Morgan.

[3/21]

𝑾𝑯𝑨𝑻 𝑰𝑺 𝑻𝑯𝑬 𝑳𝑨 𝑳𝑰𝑮𝑨 𝑪𝑽𝑪 𝑫𝑬𝑨𝑳?

🔹The deal entails that La Liga will create a new business collaborating with CVC that will handle most of the league’s activities behind the scenes including businesses, subsidiaries and joint ventures.

[4/21]

🔸It is going to be a long-term deal between both parties where the control of all sporting, competitive and broadcast areas will remain with La Liga and only the financial department would be headed by the CVC due to their expertise in the money department.

[5/21]

🔹This isn’t the first time CVC have dabbled their way into sports.

🔸They have been involved in Formula 1, Moto GP, Volleyball, Tennis and also invested £365 million in March for a 14.3% stake in the Six Nations, an annual men’s rugby tournament in Europe.

[6/21]

🔹La Liga states that CVC will allow them to improve innovation and competitiveness throughout Spanish football.

🔸Their goal is to strengthen the fans’ experience digitally and to explore new markets.

[7/21]

𝑰𝑴𝑷𝑨𝑪𝑻 𝑶𝑭 𝑻𝑯𝑬 𝑨𝑮𝑹𝑬𝑬𝑴𝑬𝑵𝑻
🔹Of the €2.7 billion, 90% will be distributed among the clubs.

🔸The top-2 teams of the league will receive a larger share compared to others.

🔹€100m of it will be invested into women’s football & non-professional games.

[8/21]

🔸La Liga’s states that the money has to be used to improve:

• Sports strategy
• International development
• Brand development
• Infrastructure, communication strategy
• Technology
• Data & content development on digital platforms
• Social networking

[9/21]

🔹The money won’t be subject to La Liga’s financial regulation or UEFA’s Financial Fair Play rules.

🔸The clubs in Spain have a huge dent in their pockets due to the pandemic which is why they should be accepting this deal with open arms.

[10/21]

🔹Even Barcelona would be able to accommodate their new signings and Lionel Messi in La Liga’s wage cap, but it looks like they are against the deal.

[11/21]

𝐒𝐓𝐑𝐎𝐍𝐆 𝐎𝐏𝐏𝐎𝐒𝐈𝐓𝐈𝐎𝐍 𝐅𝐑𝐎𝐌 𝐒𝐔𝐏𝐄𝐑 𝐂𝐋𝐔𝐁𝐒

🔸Real Madrid & Barça are against the deal but it seems like there's nothing they can do about it.

🔹Although the deal has only been verbally agreed by La Liga’s executive committee, it might be enough.

[12/21]

🔸Real Madrid and Barcelona don’t have any representatives at the committee which includes people from 7 top division clubs and hence had no say in the dealings.

[13/21]

🔹The agreement will be put out for voting in the general assembly with all 42 clubs of Spain’s top 2 flights.

🔸Even though Barcelona and Real Madrid are against it, the majority will vote for the deal since the poorer clubs desperately need the money right now.

[14/21]

🔹Although Barcelona and Real Madrid are also financially unstable at the moment and could use the money right now, this deal is bound to harm the supergiants in the long run.

[15/21]

🔸The clubs think that the deal is disproportionate and the CVC are getting away with a steal.

🔹Barcelona and Real Madrid make the most money for La Liga and they believe CVC is getting too much of the income they generate.

[16/21]

🔸Before La Liga, CVC tried to pull off a similar deal with the Italian Serie A.

🔹However, Juventus, AC and Inter Milan along with a few other clubs stopped the deal in its tracks saying the money is too little.

[17/21]

🔸Barcelona are financially tight at the moment and have a huge debt.

🔹They aren’t even allowed to register their new signings and Lionel Messi as well which has caused him to leave the club.

[18/21]

🔸Other signings might file transfer requests in the coming days & things might get really ‘Messy’ for Barça.

🔹They'll have no choice but to accept the deal to keep themselves afloat.

🔸The CVC deal could solve their problems but the club is still refusing to budge.

[19/21]

🔹Real Madrid are even ready to sue La Liga for $3.2 billion.

🔸The fate of the CVC deal is yet to be seen, but one thing is certain that Barcelona and Real Madrid are strongly condemning it.

[20/21]

🔹The clubs feel they should have been consulted beforehand and are being given the shorter end of the stick.

[21/21]

Source: foottheball.com/explainer/la-l…