LFP clubs lost 730 million in the 2020-21 season due to the economic crisis due to COVID-19
MADRID, 22 Oct. (EUROPA PRESS) –
The French Football League (LFP) is looking for a financial partner that will contribute 1,500 million euros for its commercial subsidiary and face the losses of professional clubs of 730 million in the 2020-21 season due to the crisis caused by COVID-19, as published by the French newspaper ‘L’Equipe’.
For months, the LFP has been working on the creation of a commercial subsidiary, in which it would hold at least 80 percent, as provided for in the law that will be approved on December 13. Last Wednesday, its president, Vincent Labrune, presented the project to the clubs together with representatives of the investment banks Lazard and Centerview and the Darrois law firm.
The objective is to probe the market to attract funds that could acquire a stake close to 10 percent in its commercial subsidiary for a value of 1,500 million euros. The idea is to get a part of this money immediately, as an advance, so that the clubs can breathe and invest.
These 1,500 million euros would be distributed among the clubs according to a schedule and would also go to a reserve fund to face future crises and to “finance” the structure of professional football.
The first phase, which will run between the end of October and November, will be dedicated to analyzing potential investors and receiving offers. Then, until mid to late January, you must allow an exchange with the funds before you receive firm offers. Finally, the signing phase will be devoted to the final negotiations and the signing of the legal documentation.
If all this process is successful, the clubs will have to formally decide whether to commit to this project, which would already have the support of PSG. In Spain, all the clubs -except Real Madrid, FC Barcelona and Athletic Club- have supported the signing of LaLiga with the CVC investment fund, which will inject 2,700 million into professional football in the competition and the teams.