Athletic, Barcelona and Real Madrid unveil their alternative to LaLiga’s CVC

Athletic has decided to share with its partners and followers the statement it sent yesterday, together with Barcelona and Real Madrid, to the LaLiga clubs, the Government, the CSD and the presidents of the RFEF and LaLiga. “This letter – they point out from Ibaigane – raises a financing alternative with respect to that provided by LaLiga and CVC. It does not remove Athletic Club from its official position expressed on August 12.” The title of this letter responds to “Sustainable Project: rational and sustainable financing for clubs.”

The literal text of this letter is as follows: “Dear clubs: First of all, we would like to reiterate that we are fully aware of the financial difficulties that the Spanish football sector is going through. The Covid pandemic impacted our activity dramatically, forcing us to the closure of stadiums and to suffer an unprecedented reduction in our income, from which we have not yet recovered. For this reason, we are convinced that Spanish football needs a rational and sustainable financial solution that allows us all to regain normalcy and face the future with optimism. And in this letter we propose what we consider to be the best solution. “

“Before we also want to remind you that our clubs, together with all of you, have tirelessly helped, since 1929, to build the history of LaLiga, which today is one of the main sports competitions in the world. Our commitment to competition is unquestionable. “

“We must also remind you that our clubs maintain the historic associative structure, being therefore owned by their members -approximately 300,000-, all of them with the right to voice and vote. They are clubs whose ownership and management passes from generation to generation, which have never distributed no dividend nor do they have any other economic vocation than to be able to provide their teams with the best possible resources to be competitive on the field of play. “

“From the perspective of our centennial commitment to Spanish football and its viability, our deepest opposition should be understood last August to the operation raised by LaLiga with the CVC venture capital fund, the so-called“ LaLiga Impulso Project ”, now reformulated in terms equally ruinous for Spanish football and, furthermore, not exempt from serious irregularities (both in form and substance) “.

“Now, at this precise moment in history, in which global financial markets offer unique opportunities to finance long-term projects in a sustainable way, we have a duty to oppose an operation such as the one proposed by LaLiga with CVC which, in the financially, it would weigh down the future of our football. “

“CVC cannot be considered a strategic partner of Spanish football either but, as everyone knows, a financial investor. Proof of this is that CVC, which has a small group of financial executives, intervenes in a wide variety of sectors of our economy such as such as the energy sector, textiles, food industry, telecommunications, restaurants and infrastructures, among others. Likewise, CVC managers publicly announced their intention to disengage from the LaLiga Impulso Project within a maximum period of “8 to 10 years” and transfer their position to another investor – and this despite the fact that the mortgage on the clubs would remain in force for 50 years – they are not a strategic partner, they are a financial investor. “

“And, as a financial investor, his proposal to“ promote ”Spanish football consists, essentially, in seeking and hiring specialists in the field to help LaLiga grow. It is obvious that LaLiga can – and must – make the necessary contracts. to maximize your growth potential, but you must do it on your own, without giving up your independence, without losing full ownership of your business and without the clubs mortgaging your financial future. “

“On the other hand, we must not forget that Spanish clubs currently make up one of the most important sporting competitions in the world and, consequently, we have privileged access to very reasonable sources of financing in global financial markets, under much more attractive conditions than the offered by venture capital funds. It would be irresponsible for us not to explore the viability of rational and sustainable alternatives before making any irreparable decisions. “

“Based on our very recent experience in financing operations in this sector, and after carrying out the appropriate preparatory work with our financial and legal advisors, we are in a position to present to Spanish football an alternative financial solution for all, in the long term, sustainable, rational and legal, a ‘Sustainable Project’, which, at least, deserves to be properly explored “.

“Sustainable Project would allow all LaLiga and Primera RFEF clubs to access the same capital offered by CVC, assuming infinitely better costs and terms. Sustainable Project would allow structuring the operation with a real and total cost for the clubs around 2.5% – 3.0% annually and for a maximum term of 25 years “.

“The comparison of Sustainable Project with the terms of the proposal promoted by LaLiga with the CVC fund is simple: based on the data provided by LaLiga in ‘LaLiga Impulso Project’, and always according to the terms of the so-called“ base case ”:

– The total financial cost of the LaLiga Impulso Project, which would be borne by Spanish clubs for 50 years, would amount to 13,100 million euros, in exchange for a total investment by CVC of 2,000 million euros (which, in addition, they would not pay the first day, but fractionally over 4 years), and

“- the total financial cost of the Sustainable Project, which would be borne by Spanish clubs for 25 years, would amount to 900 million euros, in exchange for a total investment by the funders of 2,000 million euros (which, in addition, I would pay the clubs in full the first year, without any split) “.

“Consequently, according to the ‘base case’ presented by LaLiga and CVC, Sustainable Project would allow Spanish clubs to save 12,200 million euros, being a proposal 15 times cheaper that, in addition, only includes commitments for 25 years, and not for fifty”.

“Sustainable Project also ensures compliance with the applicable regulations and, in particular, Royal Decree-Law 5/2015, as it is structured directly by the clubs without the direct participation of La Liga. In this way:

– The direct ownership of the clubs over the audiovisual rights is not violated, nor are the rights of any third party impaired; or

– Accounting structures and concepts are not used for artificial purposes (aspect on which the proposal put forward now by LaLiga is even more irregular, if possible, than the one that was presented – and withdrawn – in August); and – no entity outside the world of football is granted any participation in the management and governance of LaLiga “.

“In conclusion, it is disconcerting that, since there are viable, reasonable and sustainable financial alternatives such as the one we present here, a competitive, open and transparent process has not been promoted from La Liga with the aim of maximizing financial conditions for all clubs. We still have time for it. “

“We call for reflection to all actors and managers of Spanish football. It is essential to act with common sense and explore all available alternatives (such as the Sustainable Project proposed here or any other structure that provides similar benefits), in order to allow clubs to solve their financial problems in a rational and sustainable way, without incurring serious irregularities or weighing on the future of Spanish football for half a century. “

“We put at your disposal our experience and resources to, working together, carry out a Sustainable Project or any other operation that makes economic sense and respects the law to a successful conclusion. A big hug: Aitor Elizegi, Athletic Club, Joan Laporta, Fútbol Club Barcelona; and Florentino Pérez, Real Madrid Football Club “.