The rain of millions of CVC still does not reach LaLiga clubs

The rain of millions that was announced at the beginning of August that would fall in the coffers of Spanish football has not yet come. The ‘meteorological’ part of LaLiga is that they will arrive very soon, but they are being delayed more than expected according to the initial roadmap. At first, there was talk of the end of September and the beginning of October when the definitive contract with CVC would be signed, the investment fund that will contribute 2,100 million euros to LaLiga clubs, but the first days of November and the agreement has not yet been initialed. And therefore the first payment (40%) planned for October has not reached the clubs.

At the beginning of September, Óscar Mayo, executive general director of LaLiga, and Juan Arbide, general director of CVC in Spain, revealed the keys to the agreement in a small meeting with the media. Among the points to be discussed was the employer’s roadmap: At the end of September or beginning of October, sign the definitive agreement and establish the holding company. Also in October, the clubs were scheduled to receive the first payment of the 2,100 million euros that CVC will inject into LaLiga. It would be 40% of the total. The rest of the payments would be made in three amounts of 20% in each June from 2022 to 2024. But the money did not arrive in October due to the delay in signing. Even Javier Thebes, at the LaLiga Ambassadors Gala, dared to give an indicative date: “I think we will present it just after the Ordinary General Meeting of accounts. It will be around October 20 or 21.”

Despite this delay, from LaLiga they continue to transmit tranquility and point out that it is normal in issues of such depth. “There is nothing to worry about, fringes are being closed so that the money reaches the clubs as soon as possible “, sources from the management say to AS. One of the last fringes is the final distribution of the 2,100 million euros between the First and Second teams. formula to make this distribution is the same than with television rights income from the last seven seasons.

There are only three clubs of the 42 that make up LaLiga that have not joined the project and have rejected their share of the pie. Real Madrid, Barcelona and Athletic voted against and have denounced the agreement. But in the case of the Catalans, which is well known that they are going through a difficult economic situation, he revealed at the beginning of October that he did not close the door to the agreement. This is how Ferran Reverter, Blaugrana executive expressed it: “Barça does not close any door and it is not ruled out.” But it would have to be with other requirements: “The CVC conditions that they proposed we could not accept, but, if they change them, we can talk.” From LaLiga, who have always assured that they would see with good eyes and as something very positive that Barcelona sign up, categorically rule out that between the pending fringes and the delay of the signature is due to changes in clauses in the CVC contract, as claimed by Reverter,

“The process is still underway,” they say from LaLiga but with a new date on the horizon. End of November. By then they want the contract to create the holding company to be signed once and for all. “Our intention is that the agreement is signed before the end of November, any modification on that date will be made by consensus and without prejudice to the content of the agreement,” LaLiga sources assure AS. A date that coincides with the limit that CVC and the employer had given, as various media collect, to have everything closed.

Ahead there are 27 days to achieve the goal and that the rain of money begins to fall on the coffers of the clubs and start their projects to renew their infrastructures and expand throughout the world with the aim of being ready for new challenges of a market that dominates the Premier. All with the aim of getting closer to the hobbyist and increasing their sources of income. This closing of the LaLiga Impulso agreement will coincide with another important milestone for Tebas, such as the sale of television rights in Spain for the next few years. Just in a market that is trending down, as it has been seen in other competitions.

Club money

In its strategic plan, LaLiga does not want this injection to professional clubs to be aimed solely at plugging holes, allowing signings that were unthinkable days ago or raising salaries. For this reason, a series of obligations has been delivered for which the clubs have a very marked roadmap to be able to squeeze that money: 70% must go to pay for infrastructure and new investments, 15% to refinance the debt and to face the losses suffered by the pandemic (more than 1,000 million) and the remaining 15% can be used in templates.

There will be exceptions to modify these percentages, but they must be justified and receive the approval of the Delegate Commission to carry it out. It can only be varied in specific cases such as to refinance a debt or such as the construction of a stadium. Valencia, for example, could use 80% or 85% of the total money, and not just 70%, in infrastructure to finish building the New Mestalla. Or in the case of a team that wants to pay off its debt, it could use part of the 70% of infrastructure and increase the 15% to a higher figure to pay it off. The amounts to be received by each club will be distributed following the same criteria as with the income from television rights of the last seven seasons.

The 2,100 million euros is a loan to be repaid in 40 years at low interest, and in return CVC will receive 11% of the income from LaLiga’s non-audiovisual businesses and 10.95% from audiovisual businesses in the next 50 years. Of course, CVC has already warned that it will not be LaLiga’s partner during those 50 years and will leave before reaching ten years. Then, a new investment fund will arrive that will continue as a partner of Spanish football in the LaLiga Impulso project, a partner that cannot be just anyone and must meet the minimum requirements that CVC and Tebas agree on.