- August 5, 2021
- Posted by: SportsV
- Categories: Case Studies, Featured Articles, Features, Home News, Industry News, News, Press Releases
LaLiga has announced a strategic agreement called “Boost LaLiga” with the leading global investment fund CVC which will see a cash injection of €2.7bn into the competition and its clubs. This ambitious investment plan, approved unanimously by the Executive Committee, will provide LaLiga and its Clubs with all the necessary resources to fulfil its transformation strategy to become a leading global player in the digital entertainment market, while bolstering the competition and transforming the fan experience.
The transaction values LaLiga at €24.25bn, 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 coordinated 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. This is a higher figure than previous assessments considered for other projects with similar characteristics, which can only reflect the excellent work that has been carried out by LaLiga to date.
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.
The investment in improving the competition will drive growth in fan numbers and their experience with LaLiga. 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.
Building Brand Spain
The resources provided by the agreement between CVC and LaLiga 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. All incorporating sustainability, good governance and diversity as fundamental values of the model.
LaLiga will keep its sports responsibilities as well as the organisation and management of audiovisual rights sales.
CVC Funds bring to this project its financial firepower, its management capacity and its expert knowledge in 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 firmly established with essential technological partners for the implementation of the specific projects contained in this plan.
LaLiga is a global, innovative and socially responsible organisation, a leader in the leisure and entertainment sector. It is a private sports association composed of the 20 teams in LaLiga Santander and 22 in LaLiga SmartBank, responsible for the organisation of these national professional football competitions.
In the 2019/2020 season, LaLiga reached more than 2.8 billion people globally. With headquarters in Madrid (Spain), it is present in 55 countries through 11 offices and 46 delegates. The association carries out its social action through its Foundation and is the world’s first professional football league with a league for intellectually challenged footballers: LaLiga Genuine Santander.
Source & imagery, courtesy: LaLiga
© LaLiga – 2021
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