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Real Madrid, Barcelona and Athletic Bilbao have printed a letter, which they despatched to the opposite golf equipment in LaLiga. Within the letter, they current an alternative choice to the CVC challenge created by LaLiga.
The golf equipment will make a closing choice in regards to the CVC challenge on December tenth, a choice which will probably be essential for the way forward for Spanish soccer. Actual Madrid, Barça and Athletic Bilbao are nonetheless in opposition to that challenge for the explanations they printed and defined on the next letter.
As printed on Realmadrid.com
Pricey golf equipment,
We’d to start with wish 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 impression on our exercise, forcing us to shut stadiums and face an unprecedented lower in our revenues, from which we have now 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 most effective resolution.
Earlier than that, we additionally wish 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 at present 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 preserve 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 era to era, which have by no means handed out any dividends nor have any financial objective apart from to have the ability to present their groups with the very best sources 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 12 months we expressed our deepest opposition to the deal proposed by LaLiga with the personal fairness fund CVC, the so-called “LaLiga Impulse Mission”, which has now been reformulated in phrases which might be equally ruinous for Spanish soccer and, moreover, not free from critical irregularities (each in kind and in substance).
At this very second in historical past, when international monetary markets supply distinctive alternatives to finance long-term initiatives in a sustainable manner, we have now 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 financial 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 Mission inside a most interval of “8 to 10 years” and to switch their place to a different investor – even if the mortgage on the golf equipment would stay in power for 50 years. They don’t seem to be a strategic associate, they’re a monetary investor.
And, as a monetary investor, the proposal to “propel” Spanish soccer consists, primarily, of searching for out and hiring specialists within the subject to assist LaLiga increase. It’s apparent that LaLiga can – and will – make the required appointments to maximise its progress potential, however it should achieve this with its personal sources, with out renouncing its independence, with out forfeiting full possession of its enterprise and with out the golf equipment mortgaging their monetary future.
Alternatively, we should not overlook that Spanish golf equipment at the moment represent probably the most essential sports activities competitions on the planet and, in consequence, we have now privileged entry to very affordable sources of financing within the international monetary markets, below way more enticing situations than these provided by personal fairness funds. It will be irresponsible for us to not discover the feasibility of rational and sustainable options earlier than taking any irreparable selections.
Based mostly 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 ready to current to Spanish soccer another long-term, sustainable, rational and authorized monetary resolution for everyone, a “Sustainable Mission”, which, at the least, deserves to be duly explored:
-The Sustainable Mission 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 Mission would allow the operation to be structured with an actual and whole value for the golf equipment within the vary of two.5%-3.0% per 12 months and for a most time period of 25 years.
-The comparability of the Sustainable Mission with the phrases of the proposal promoted by LaLiga with the CVC fund is easy:
– primarily based on the info supplied by LaLiga in “LaLiga Impulse Mission” and all the time in accordance with the phrases of the phrases of the so-called “base case”:
-the whole monetary value of the LaLiga Impulse Mission, 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 whole monetary value of the Sustainable Mission, 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, can be paid in full to the golf equipment within the first 12 months, with none instalments);
in consequence, in accordance with the “base case” offered by LaLiga and CVC, the Sustainable Mission 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 Mission additionally safeguards compliance with the relevant rules and, particularly, with Royal Decree-Legislation 5/2015, as it’s structured immediately by the golf equipment with out the direct participation of LaLiga. On this manner:
-the direct possession of the golf equipment over the audiovisual rights is just not infringed, nor are the rights of any third celebration impaired;
-no accounting buildings and ideas are utilized for synthetic functions ( a degree on which the proposal now put ahead by LaLiga is way extra irregular, if doable, than the one offered -and withdrawn- in August); and
-no participation within the administration and governance of LaLiga is entrusted to any entity outdoors the world of soccer.
For a greater understanding of the phrases of the Sustainable Mission, we connect the next as an Annex to this letter:
-The abstract of the primary phrases of the Sustainable Mission 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 comparable offers (Part 1);
a comparability of the monetary impression of the Sustainable Mission with regard to the deal proposed by La Liga and CVC, primarily based on varied monetary situations (and, particularly, on its so-called “base case”) (Part 2); and
-The evaluation of our authorized providers and authorized advisors of among the essential flaws of the LaLiga Impulse Mission, and the the explanation 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 options just like the one we current right here, LaLiga has not promoted a aggressive, open and clear course of with the target of searching for to maximise the monetary situations for all golf equipment. We nonetheless have time to take action.
We enchantment to all of the stakeholders and decision-makers of Spanish soccer to replicate on this matter. It’s important that we act with frequent sense and discover all out there options (such because the Sustainable Mission proposed right here or another framework that yields comparable advantages), to be able 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 subsequent half century.
By working collectively, we give you our expertise and sources to carry the Sustainable Mission , or another operation that makes monetary sense and respects the legislation satisfactorily, to a profitable conclusion.
Sort regards,
Aitor Elizegi Joan Laporta Florentino Pérez
Athletic Membership F. C. Barcelona Actual Madrid C. F
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