Leo Messi, during a match between Barcelona and Celta de Vigo.ALBERT GEA / Reuters
Rain of millions for Spanish football at a time when the ball industry has to tighten its belt due to the ravages of the coronavirus.
LaLiga closed an agreement with the CVC fund on Wednesday for which it will receive 2,667.5 million in exchange for divesting 11% of its business.
This money is a necessary lifeline for many clubs in a critical financial situation.
But long-term conditions may not be as beneficial.
In addition to getting rid of a part of the business, the money will come to the equipment in the form of a loan.
With an interest below market, yes, but that will have to be repaid.
Barcelona will be the most benefited from the deal, if the operation is ratified in the Club Assembly on August 12: they are responsible for just over 250 million.
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This stream of financing will facilitate the renewal of Leo Messi for Barcelona, who will be able to increase his salary limit by about 38 million euros (15% of the amount he receives).
But such is the hole in the accounts of the Blaugrana team that the extra money will not be enough to clean up their economy.
On the other hand, the new funds will not serve Real Madrid or Atlético de Madrid to buy stars such as Kylian Mbappé or Erling Haaland, since it is established that only that same 15% of the loans can be used to pay for transfers (or increase the cap salary), which would be insufficient for the expense required by large transfers.
The agreement of the association of football clubs, chaired by Javier Tebas, leaves out the management and negotiation of television rights, although CVC will keep the corresponding part of what this commercialization generates. Of the amount received by LaLiga, 2,460.3 million will be dedicated to participating loans to clubs with a variable interest of 40 years. This minimal interest supposes, according to LaLiga sources, beneficial conditions that are difficult to achieve in the market individually. But the amount will have to be returned, so the value given to that 11% of the competition's business will be much lower. The positive effect will be above all in the short term, since it will make it possible to rescue the clubs that are in an extreme situation due to the crisis. According to sources familiar with the agreement,This involves advancing money through a loan that will be returned, in principle, with a part of the income from the activity that LaLiga will generate and that will receive the fund.
The amount that will go to the clubs will be distributed based on what they have received for television rights since the 2016/2017 season. "For the distribution, the audiovisual income of the clubs in recent years is taken into account, because it is a representation of what each one has contributed through the LaLiga budget for the investment that has been made by the association," they explain professional club association sources.
In this way, almost 254 million euros correspond to Barcelona, according to the calculations made by EL PAÍS with the data available in LaLiga, where only the payment for audiovisual rights corresponding to the 2020/2021 season is missing. There may be some variations in the final amount, especially between the teams that have promoted or descended in that period, but they will be very similar to the figures reflected in the previous table.
Of the more than 250 million for the culé team, therefore, only 15% can be dedicated to increasing the salary cap of its squad (about 38 million), little less than what it will cost him per season to have Messi when he signs his renewal. "The clubs can apply or divide that 15% in staff in the time and term they consider," explain spokespersons for the body that presides over Tebas. The problem for Barcelona is that it has a huge hole in its accounts and this amount will not be enough. Sources familiar with Barça's numbers explain that the club needs to cut even more than those 38 million in salary expenses before being able to register the Argentine. The announcement of the agreement to rehire him is imminent, according to club sources.But if they trusted in this agreement with CVC to register it, they would have to wait at least until August 12, when the Assembly will have to ratify the pact. Real Madrid, which, like Barça, has not participated in the negotiations and is waiting to know all the details of the agreement to make a pronouncement, would enter a somewhat lower amount, although similar.
Disadvantaged clubs
Thus, this economic injection will help to balance the accounts of some clubs with financial problems, but for others it could be understood as a comparative injury.
Especially for those who have done their homework and adjusted their expenses to the new income reality that the covid has left.
More if possible for those who have even shed players to lighten the salary mass, such as Real Madrid, which has let two pillars of the team escape this summer in the last decade (Sergio Ramos and Raphaël Varane).
Also Atlético de Madrid, which has not been able to incorporate Antoine Griezmann due to not being able to assume his card and comply in turn with the financial regulations of LaLiga.
In fact, to receive the money from the fund, the clubs agree to dedicate the amount that corresponds to investments in strategic areas: sports strategy, infrastructure, international development, brand and product development, communication strategy, innovation plan, technology and data, and content development plan on digital platforms and social networks. In this way, LaLiga tries to avoid that the entire amount is allocated to spending on transfers and that funding is wasted in months that should serve to develop the international business of the competition in the coming years. That is, Real Madrid, for example, will not be able to take out the checkbook thanks to this inflow of extra money to bring new faces to the locker room.The weight between the concepts to which the money can be dedicated would be distributed as follows: 70% can be invested in infrastructure, 15% to refinance debt and offset losses due to the coronavirus crisis and another 15% for registration of players (may go to increase the salary cap, to transfers or divided between both).