The Spanish La Liga has confirmed a strategic agreement called “Boost La Liga” with the leading global investment fund CVC which will see a cash injection of €2.7 Billion into the competition and its clubs. The transaction values La Liga at €24.25 Billion.
It is the latest investment in sport by CVC Partners who have over the past year bought significant minority stakes in PRO14 Rugby, now rebranded as the United Rugby Championship, the English premiership in Rugby and the Six Nations holding company, as well as in World Volleyball.
The bandwidth needed to keep on top of so many major sporting properties, all of which have been bought into on the basis of making a significant improvement to their media and commercial revenue potential is staggering.
According to a statement released to us by La Liga “This agreement aims to lead the transformation currently experienced in the global entertainment sector, and to maximise every growth opportunity available to the clubs to develop a new business model that will allow them to diversify and maximise revenues through marketing models that will help to accelerate their digital transformation.”
“Moving from the current single-product model, based almost exclusively on the game and the sale of audiovisual rights, to a multi-product/multi-experience one with a direct relationship with fans, amplified by technology and digital and analytical capabilities.”
“In this sense, LaLiga is already well on the way to becoming a global player, with the best entertainment content, a strong digital presence and the ability to capture and analyse data that facilitates direct omnichannel interaction with fans all over the world, with a clear focus on the optimisation of their experience with the brand.”
There are a lot of buzz words in there but reading between the lines it is not beyond the bounds of possibility that ‘direct engagement’ and ‘omnichannel distribution’ could ultimately lead to a direct to viewer exclusive offering whereby all games are streamed live to all fans for a direct payment.
Such a deal would give control of how to know and understand fans in a way that is currently not possible through giving broadcast rights, for a major investment, to a third party broadcaster.
This is not about the next media rights deal but the one after and the likelihood is that in ten years time the way in which we consume our sport will be vastly different from how we do so today.
The La Liga statement continues that “The investment in improving the competition will drive growth in fan numbers and their experience with La Liga. The technological capabilities of the LaLiga and the clubs’ ecosystem will also be strengthened, offering new content, new channels and new markets.”
“90% of the 2.7 billion euros proposed to be invested by CVC Funds will be earmarked for the clubs, including women’s football, semi-professional and non-professional football under the guidance of the Royal Spanish Football Federation and the Higher Sports Council (more than 100 million euros). Thus, making this strategic agreement an inclusive, equitable and democratic one that not only bolsters the economic viability of all Spanish football clubs but also opens up a new present and future for them by allowing them to advance in their development and transformation by at least a decade.”
“The resources provided by the agreement between CVC and La Liga will also have a multiplier effect, not only in the world of football, but also in its contribution to building Spain’s image abroad via Brand Spain, in creating jobs for the sector and in attracting talent.”
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