FC Barcelona have agreed to sell 10 percent of their media rights to the American investment group Sixth Street, in a deal that will provide more than 200 million euros to strengthen the problematic funds of the Spanish football club.
The deal, announced on Thursday, will give Sixth Street some of the Catalan club’s media rights for a 25-year period. The club may consider selling another 15% of the shares later this summer, according to people familiar with the matter, which could allow Sixth Street to increase its stake even further.
Barcelona’s financial health has been halted due to the accumulation of Short-term debts After a season that began with the departure of its veteran star, Lionel Messi. Club president Joan Laporta compared his money to a Formula 1 car that ran out of fuel, but said his goal was to “leave the pits and return to the front row of the network to compete and win again.”
The club chose to sell its own share of the TV rights instead of participating in La Liga’s € 2 billion deal with private equity group CVC Capital Partners, which provided a capital injection in exchange for 11% of media rights for 50 years.
La Liga, which manages the top two divisions in Spain, originally agreed on a € 2.7 billion funding package but was forced to reduce the scope of the CVC deal due to opposition from Barça And Real Madrid, both of whom refused to join. The two clubs, which Get a bigger share Than their rivals from the revenues from broadcasts that created it a league, they failed in a late proposal to thwart the CVC deal with a counter-offer to other clubs that were involved in bank financing.
Spain’s two leading clubs – sworn rivals on the pitch but increasingly aligned off – were founding members of the Europa League, a breakout competition that collapsed quickly after its unveiling in April 2021. La Liga opposed the ESL and publicly criticized Barça and Real Madrid for their role in its formation. .
For Friday Street, the deal comes shortly after it agreed to a separate investment in Real Madrid. The San Francisco-based fund, which manages more than $ 60 billion in assets, will pay 360 million euros to partner with Real Madrid to renovate the Santiago Bernabeu Stadium and a package of live events over a 20-year period. Sixth Street also has a minority stake in the San Antonio Spurs American basketball team.
The sale of shares in Barcelona’s media rights was led by Key Capital, the Spanish brokerage that previously advised Real Madrid on its stadium deal with Sixth Street.
This is also following a vote at this month’s general meeting of Barcelona, which gave the club permission to sell shares of up to 25% in the media rights of the Catalan football empire and up to 49% in Barça’s merchandise and sponsorship business. At the time, Barcelona said the properties had the potential to provide a An additional 600 million euros.
Barcelona’s financial decline intensified in the wake of the Corona epidemic, with games at its famous 99,000-seat Camp Nou stadium held behind closed doors.
Despite the € 222 million sale of Brazilian striker Neymar to Paris Saint-Germain in 2017, Barcelona have over the years created a deficit from player transfers. A high salary bill added to the pressure and led to Messi leaving the same club.
Only three clubs in Europe’s big five leagues have had a worse result than Barcelona’s € 650 million transfer spending in the decade since the summer of 2012, according to a CIES Football Observatory study.
Barcelona sells media rights stake to Sixth Street in bid to repair finances Source link Barcelona sells media rights stake to Sixth Street in bid to repair finances