Monday , April 22 2024

LaLiga about the hypothetical offer from JP Morgan, Bank of America & HSBC!

Given the publication by some media of the letter sent by Real Madrid CF, Athletic Club and FC Barcelona to the rest of the member clubs of the General Assembly of LaLiga, in which a hypothetical financing offer is transferred, at 2.5-3% interest for 25 years, on behalf of JP Morgan, Bank of America and HSBC to the clubs of LaLiga, this association wishes to state:

  • Presenting an offer on the night of December 2 knowing that the Assembly will be on December 10, and knowing of the operation since August 12, shows that the intention is to derail a project that endangers their individual objectives even if they have to destroy the collective future of the competition and its clubs.
  • The proposed operation, according to the letter, is a collective financing through a credit, but it presents a significant absence of essential details to understand the viability. At first reading of the financing offer it is surprising to note that it would be impossible to fulfill for most of the clubs participating in the competition, including FC Barcelona.
  • The Boost LaLiga (LaLiga Impulso) project is the result of many months of intense work in which all the structural complexities have been resolved, among other things the changing universe of participating clubs. Boost LaLiga is ready to be executed and CVC is ready to begin the transformation. On the other hand, the operation presented in this letter is based on an improvised proposal elaborated without the minimum rigor required.
  • To attempt a comparison with the LaLiga / CVC project demonstrates a complete lack of understanding of Boost LaLiga, which is much more than a financing operation. Boost LaLiga aims to incorporate an industrial partner with extensive experience in Spain and in the sports rights sector that provides long-term capital and proven industrial experience to help LaLiga and its clubs grow globally at a time of great challenges and uncertainties for the industry.
  • The companies in which CVC invests in, have an unrivalled track record of operational and commercial improvement, including in MotoGP, F1, Rugby, Volleyball or Cricket. CVC is a partner with experience in the sector and extensive international presence that will help in the improvement process.
  • Boost LaLiga is not the answer to a liquidity problem of LaLiga clubs but a strategic project to guarantee the competitiveness and growth in the medium and long term of the competition and its clubs. As explained, 70% of the funds of the Boost LaLiga project will go to long-term value creation projects. CVC will help LaLiga and clubs – including those not adhering to the project – to optimise the use of those funds, with the aim of increasing the value of the competition in the long run.
  • It is surprising that the promoters of the European Super League, which was lethal for the national leagues, express concern about a project that does not affect them economically and that most LaLiga clubs approve of.

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