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We’d initially prefer to reiterate that we’re totally conscious of the monetary difficulties that the Spanish soccer business is experiencing. The Covid pandemic has had a dramatic affect on our exercise, forcing us to shut stadiums and face an unprecedented lower in our revenues, from which we’ve not but recovered. Due to this, we’re positive that Spanish soccer wants a rational and sustainable monetary resolution which is able to permit us all to return to normality and sort out the long run with optimism. On this letter we suggest what we contemplate to be the very best resolution.
Earlier than that, we additionally need to remind you that our golf equipment, together with all of you, have tirelessly helped, since 1929, to create the historical past of LaLiga, which is immediately one of many world’s main sporting competitions. Our dedication to the competitors is unquestionable.
We should additionally level out to you that our golf equipment keep their historic affiliation construction, and are subsequently owned by their members – roughly 300,000 of them – all of whom have the correct to be heard and to vote. They’re golf equipment whose possession and administration move from technology to technology, which have by no means handed out any dividends nor have any financial goal aside from to have the ability to present their groups with the absolute best assets to be aggressive on the pitch.
It’s from the standpoint of our centenary dedication to Spanish soccer and its viability that in August this yr we expressed our deepest opposition to the deal proposed by LaLiga with the personal fairness fund CVC, the so-called “LaLiga Impulse Venture”, which has now been reformulated in phrases which can be equally ruinous for Spanish soccer and, moreover, not free from critical irregularities (each in type and in substance).
At this very second in historical past, when world monetary markets supply distinctive alternatives to finance long-term tasks in a sustainable approach, we’ve an obligation to oppose a deal such because the one proposed by La Liga with CVC, which might financially burden the way forward for our soccer.
Moreover, CVC can’t be thought of a strategic associate of Spanish soccer however, as everybody is aware of, a monetary investor. Proof of that is that CVC, consisting of a small group of economic executives, is concerned in a variety of sectors inside our economic system such because the vitality sector, textiles, meals business, telecommunications, catering and infrastructures, amongst others. Equally, the managers of CVC publicly revealed their intention to disassociate themselves from the LaLiga Impulse Venture inside a most interval of “8 to 10 years” and to switch their place to a different investor – even supposing the mortgage on the golf equipment would stay in drive for 50 years. They aren’t a strategic associate, they’re a monetary investor.
And, as a monetary investor, the proposal to “propel” Spanish soccer consists, basically, of looking for out and hiring specialists within the subject to assist LaLiga develop. It’s apparent that LaLiga can – and may – make the mandatory appointments to maximise its progress potential, but it surely should accomplish that with its personal assets, with out renouncing its independence, with out forfeiting full possession of its enterprise and with out the golf equipment mortgaging their monetary future.
However, we should not overlook that Spanish golf equipment at the moment represent one of the crucial essential sports activities competitions on the earth and, in consequence, we’ve privileged entry to very affordable sources of financing within the world monetary markets, beneath far more engaging circumstances than these provided by personal fairness funds. It could be irresponsible for us to not discover the feasibility of rational and sustainable alternate options earlier than taking any irreparable selections.
Primarily based on our fairly current expertise in financing operations on this business, and after conducting the suitable preparatory work with our monetary and authorized advisors, we’re able to current to Spanish soccer an various long-term, sustainable, rational and authorized monetary resolution for everyone, a “Sustainable Venture”, which, a minimum of, deserves to be duly explored:
-The Sustainable Venture would permit all LaLiga and Primera RFEF golf equipment to entry the identical funds provided by CVC, whereas assuming infinitely higher prices and phrases.
-The Sustainable Venture would allow the operation to be structured with an actual and whole value for the golf equipment within the vary of 2.5%-3.0% per yr and for a most time period of 25 years.
-The comparability of the Sustainable Venture with the phrases of the proposal promoted by LaLiga with the CVC fund is straightforward:
– based mostly on the info supplied by LaLiga in “LaLiga Impulse Venture” and all the time in response to the phrases of the phrases of the so-called “base case”:
-the whole monetary value of the LaLiga Impulse Venture, which might be assumed by Spanish golf equipment over 50 years, would quantity to 13.1 billion euros, in trade for a complete funding by CVC of two billion euros (which, as well as, wouldn’t be paid on the primary day, however in installments over 4 years), and
-The full monetary value of the Sustainable Venture, which might be assumed by the Spanish golf equipment for 25 years, would quantity to 900 million euros, in trade for a complete funding of two billion euros by the funders (which, as well as, could be paid in full to the golf equipment within the first yr, with none instalments);
in consequence, in response to the “base case” offered by LaLiga and CVC, the Sustainable Venture would save Spanish golf equipment 12.2 billion euros, making it a proposal that’s 15 instances extra economical and which, moreover, solely consists of commitments for 25 years, and never 50.
–The Sustainable Venture additionally safeguards compliance with the relevant rules and, particularly, with Royal Decree-Legislation 5/2015, as it’s structured instantly by the golf equipment with out the direct participation of LaLiga. On this approach:
–the direct possession of the golf equipment over the audiovisual rights just isn’t infringed, nor are the rights of any third get together impaired;
–no accounting constructions and ideas are utilized for synthetic functions ( a degree on which the proposal now put ahead by LaLiga is way extra irregular, if attainable, than the one offered -and withdrawn- in August); and
–no participation within the administration and governance of LaLiga is entrusted to any entity exterior the world of soccer.
For a greater understanding of the phrases of the Sustainable Venture, we connect the next as an Annex to this letter:
-The abstract of the primary phrases of the Sustainable Venture Time period Sheet. This doc was ready by our monetary advisors, with the assistance and indication of preliminary phrases by a bunch of economic establishments of recognised status and expertise in related offers (Part 1);
a comparability of the monetary affect of the Sustainable Venture with regard to the deal proposed by La Liga and CVC, based mostly on numerous monetary situations (and, particularly, on its so-called “base case”) (Part 2); and
-The evaluation of our authorized companies and authorized advisors of a few of the most important flaws of the LaLiga Impulse Venture, and the the reason why these flaws wouldn’t be relevant to our proposal (Part 3).
In conclusion, it’s perplexing that, given the existence of viable, affordable and sustainable monetary alternate options just like the one we current right here, LaLiga has not promoted a aggressive, open and clear course of with the target of looking for to maximise the monetary circumstances for all golf equipment. We nonetheless have time to take action.
We attraction to all of the stakeholders and decision-makers of Spanish soccer to mirror on this matter. It’s important that we act with frequent sense and discover all obtainable alternate options (such because the Sustainable Venture proposed right here or another framework that yields related advantages), with the intention to permit the golf equipment to resolve their monetary issues in a rational and sustainable method, with out committing critical irregularities or harming the way forward for Spanish soccer for the following half century.
By working collectively, we give you our expertise and assets to deliver the Sustainable Venture , or another operation that makes monetary sense and respects the legislation satisfactorily, to a profitable conclusion.
Variety regards,
Aitor Elizegi Joan Laporta Florentino Pérez
Athletic Membership F. C. Barcelona Actual Madrid C. F
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