Soccer’s liquidity is guaranteed at this time of crisis

Without a doubt, December does not have to be a boring month or a mere formality before the Christmas holidays. The president of the Spanish soccer association, Javier Tebas, has emerged as the protagonist and has struck a blow on the table that, without a doubt, has positioned him as the financial and ideological engine of La Liga for many years.

The month of December saw the consolidation of the agreement with the CVC fund. The capital injection has already been made effective, at least a first part, the total amount of it will be 1,994 million euros. In exchange, La Liga would yield 8.2% of the profits generated by the commercialization of the competition (audiovisual and digital rights and other income) for 50 years. These supposes an injection somewhat less than what was initially stipulated (around 2,100 million euros) and a somewhat lower percentage, it was speculated around 10.95% at first. All this process has not left the different Spanish football clubs indifferent. The agreement needed approval with at least 32 votes in favor, Tebas got 37. Against, his arch-enemies and promoters of the Super League, Real Madrid and FC Barcelona, ​​Athletic de Bilbao, Ibiza and one abstention. This group of opponents tried, without success, to develop a Sustainable Project. A loan granted by JP Morgan, Bank of America and HSBC to be repaid for 25 years, a more orthodox route and that will undoubtedly lead to a judicial war between these 3 (Ibiza alleges lack of background in professional football to support CVC but will not go to a war) and the bosses.

“Tebas stands as the undisputed leader of Spanish football”

All this seasoned with the ghost of the Super League in the background. The club that has benefited the most from the agreement in the First Division is Atlético de Madrid with 181 million euros, the minus Elche with 10. In addition to the injection in the transfer market, it should be noted that the agreement will allow the development of some seemingly impossible projects . I am left with two examples. The Ciudad Deportiva and the Mini Stadium annexed to the Wanda Metropolitano that Atlético de Madrid will build and without a doubt, the definitive execution of the New Mestalla. The club has already announced through the mouth of its president Anil Murthy that in 2022 the works will begin to finish the Valencian coliseum. Without a doubt a boost for our football.

But as the joys do not come alone, a few days ago, the new agreement on the television rights of the First Division teams was announced, the play has been masterful. With an increase of 1% in national rights. An impact of almost 5% on the Ibex 35 for one of the buyers (Telefónica) and especially the guarantee of sustained growth in the next 5 years. DAZN and Telefónica have bought 8 weekly La Liga games at a rate of 990 million euros a year. Currently the amount was 980 million and the open game, the Horeca channel and the Smartbank League have yet to be awarded. Thebes’ negotiating skills have been brutal. Italy, France and Germany have lost between 4 and 5% of their income, in France the blow may be even greater with the Mediapro crisis. Only the Premier, who kept the previous contract, has not suffered in this post-COVID negotiation. We cannot ignore the English data. The league sells its rights for 4,950 million for 5 years, the Premier 11,600 million for 3. Undoubtedly, the English clubs will continue to be the engine of the European market and every day the distances will become greater, the NBA of football.

In short, I think we are in luck with all those involved in the world of football. Liquidity and the business model are guaranteed at this time of crisis and, without any doubt, the figure of Javier Tebas must be praised, who stands as the undisputed leader of Spanish football and possibly the benchmark executive in the world. European continent.