Thread by @MaanoMadima

Banks and private equity firms have seen the amount of money sports has and want to benefit.

1) Citi appointed as the sole global coordinator bank to set up UEFAs European Club Football Recovery Plan €2bn programme.

2) CVC Capital Partners invested €2bn in La Liga.

[Thread]

1) Citigroup beat Goldman Sachs and Macquarie and private equity firm Apollo to be as appointed as the sole global coordinator bank to set up UEFAs European Club Football Recovery Plan €2bn programme.

The financing programme aims to provide teams with liquidity aimd the effects of Covid-19.

European Club Football Recovery Plan which seeks to use UEFA club competition revenues as security.

This financing agreement does not involve signing over equity or a portion of UEFA's broadcast revenues.

Programme is a pure debt financing agreement which will be secured against the UEFA's broadcasting rights for its club competitions which include the famous Champions League.

The programme will provide eligible clubs with a stable source of funding at competitive rates over a long period of time, thus establishing a framework for future football funding.

Financing will commence with an initial amount of €2bn and is expect to growth to €7bn.

Financing programme will also be accompanied by the implementation of stricter Club Licensing and Financial Fair Play regulations, currently being discussed with football stakeholders. The ultimate goal being the financial stability of the entire European club football ecosystem.

2) LaLiga and CVC Fund VIII signed a strategic agreement which will see the league (La Liga) and clubs receive a total of €2 billion.

Participanting clubs will allocate up to 70% to technology, innovation, internationalisation, and sporting growth initiatives and...

... up to 15% can be used to sign players, with the remaining 15% for reducing debt.

The agreement with LaLiga valued the league at a historic high of €24.25 billion by independent experts Rothschild & Co and Duff & Phelps.

What does CVC Capital Partners get in exchange for providing La Liga with €2bn?

CVC Capital Partners will get a 8.2% of the Spanish league’s “commercial profits” (revenues after costs from setting up a new commercial entity) for the next 50 years.

CVC is licking its lips here.

Example of how investment banks want to be 1st in line to benefit from sports was via the Super League.

JPMorgan sought to provide $6bn in debt financing.

Founding clubs would've collectively received a €3.5bn grant to spend on infrastructure and €100m-€350m each to join.

CVC Capital Partners and Bain Capital are rumoured to be preparing bids for a stake worth €1.7bn for Ligue 1's (French football) media rights business.

Don't be surprised to see more of such transactions in the next 12-48months.

CVC is sharp.

CVC leads a consortium that has a 39% stake in the Formula One Group.

CVC got involved in Formula One (F1) when Liberty Media Group took over F1.

See quoted tweet (🧵) for more information regarding the ownership of F1 and how Saudi Arabia

https://twitter.com/MaanoMadima/status/1476509541055578114?t=9ot49HLnFeT6JbAi_dMp0Q&s=19

The overall private capital industry was valued at $7.4tn at the end of 2020 and it is expected to touch $13tn by 2025.

Private equity firms are littered with money and I am sure they quote Khanyi Mbau every morning.