2021 - 2022 Football Thread - Page 68

On December 01 2021 23:08 sharkie wrote:


Whats there to troll? Messi fanboys make it sound as Barca has the worst squad in the world whereas it still one of the best squads in Europe...

On December 01 2021 23:08 sharkie wrote:


Whats there to troll? Messi fanboys make it sound as Barca has the worst squad in the world whereas it still one of the best squads in Europe...

Three of Spain’s top soccer clubs are leading an 11th-hour attempt to scupper CVC Capital Partners’s roughly 2 billion-euro ($2.3 billion) deal to inject much-needed funds into the country’s top leagues, according to people familiar with the matter.

Real Madrid CF, FC Barcelona and Athletic Bilbao have presented an alternative funding proposal for a similar amount that would leave LaLiga out of the equation, according to a letter sent to all first and second division clubs that was seen by Bloomberg and signed by the presidents of the three big clubs.

According to the alternative plan, a special purpose vehicle would raise 2 billion euros in debt. The proceeds would be distributed to clubs in the same proportion discussed in the CVC deal, and clubs would repay 115 million euros each year for 25 years with media revenue, without compromising the ownership of the rights, according to the letter. Under the CVC proposal, the private equity firm would own a 10% stake in a newly created entity that would hold LaLiga businesses and the media rights of clubs for 50 years.

The cost difference between the two proposals is huge for clubs, with 900 million euros under the new plan from the three clubs, compared with 13.1 billion euros for the CVC plan, according to the letter. The latest alternative assumes a 3% rate of interest, compared with its estimate of 9.9% for the CVC proposal.

That the proposed funding is through debt would make it impossible for many clubs, including Barcelona, to meet their financial obligations, LaLiga said in a statement.

The clubs have been working with banks including Bank of America Corp., JPMorgan Chase & Co. and HSBC Holdings Plc on financing the plan. The expectation is that the interest on the debt will be between 2.5% and 3%, depending on the rating of the deal, according to the letter.

Crucial Vote

The developments come before a crucial vote next week by club presidents on whether to back CVC’s offer to buy a 10% stake in a new company housing all of the Spanish soccer league’s businesses. LaLiga needs 22 of 42 first and second division clubs for the signing to happen.

Real Madrid and Barcelona have already voiced opposition to the deal, saying it risks seeing the league lose control of its media rights for the next 50 years. Their rival proposal carries a shorter time frame of 25 years, one of the people said.

Spain’s El Confidencial earlier reported news of the counterproposal.

Representatives for Bank of America, Athletic and JPMorgan declined to comment, while a spokesperson for Real Madrid didn’t immediately respond to requests for comment. A Barcelona club spokeswoman confirmed that there is a proposal from her club, Real Madrid and Athletic Bilbao with a maximum interest of 3% to be paid in 25 years.

Stadium closures and rebates to broadcasters during the pandemic combined to drag LaLiga revenue down 8% to 3.1 billion euros in the 2019-2020 season, according to Deloitte’s latest annual review of the sport, with lockdowns having extended into the more recent campaign. That’s had a big impact on clubs like Barcelona and Real Madrid, known for spending sky-high sums to attract and keep the world’s best players.

While CVC has successfully invested in sports, including motor-bike racing, volleyball and rugby, it has struggled with previous soccer deals. The firm tried, and failed, to invest in Germany’s Bundesliga and Italy’s Serie A.

JPMorgan earlier this year was involved in financing a proposal by Europe’s top clubs for a breakaway Super League. Those efforts quickly crumbled in the face of fierce opposition from fans and politicians.