LaLiga gets Euro 2.7 billion boost to inject new income into digital transformation
LaLiga has announced a strategic agreement called Boost LaLiga with the global investment fund CVC which will see a cash injection of Euro 2.7 billion into the competition and its clubs.
The investment plan, which has been approved unanimously by the league’s Executive Committee (Comisión Delegada), will provide LaLiga and the clubs with all the necessary resources to fulfil its transformation strategy to become a leading global player in the digital entertainment market, while at the same time bolstering the competition and transforming the fan experience.
The transaction values LaLiga at 24.25 billion euros, a price tag that acknowledges LaLiga’s leadership as one of the most prominent sports competitions in the world, as well as recognising its growth potential through a greater digital presence. In a co-ordinated effort between LaLiga and its clubs, the league will target greater direct interaction with fans, investment in the brand, the sport and in the internationalisation of both.
The 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. The intention is to move 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 a strong digital presence and the ability to capture and analyse data that facilitates direct omnichannel interaction with fans all over the world.
The technological capabilities of the LaLiga and the clubs’ ecosystem will also be strengthened, offering new content, new channels and new markets.
Some 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.
The resources provided by the agreement 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.
For the implementation of this strategic plan, the clubs take on a commitment to allocate the investment they receive to the promotion of their own Development Plan, agreed with LaLiga, which will include the following main areas: sports strategy, infrastructure, international development, brand and product development, communication strategy, innovation, technology and data plan, and content development plan on digital platforms and social networks.
LaLiga will keep its sports responsibilities as well as the organisation and management of audiovisual rights sales.
CVC bring to this project its financial firepower, its management capacity and its knowledge of the development of sports businesses thanks to its extensive experience of over 25 years in international competitions such as rugby, volleyball, tennis, Moto GP, Formula 1, plus the relationships it has established with essential technology partners for the implementation of the specific projects contained in this plan.