Barcelona financial trouble ease after proposed sales of TV right

0 44

Barcelona is set to sell 10 percent of the La Liga Television right as the club wants to ease their financial trouble.

La Liga club Barcelona have agreed to sell 10 percent of their television right €207.5 million to the global investment firm Sixth Street for 25 years, the Catalan club announced on Thursday.

The deal ensures Barcelona will close the financial year, which ends on June 30, with a slight profit rather than losses for the third successive year.

Inner sources have played down the idea of injecting the cash to bring in more players. They say further commercial deals, player departures and reducing the wage bill are still the immediate concerns.

Barcelona’s most pressing concern was to avoid ending the 2021-22 campaign with losses, although the deal could help increase their LaLiga-imposed spending limit in the long-term, which is -€144m — the only negative cap in the league.

“We are activating economic levers and executing on our patient, sustainable, and efficient strategy to strengthen the club’s financial footing,” Barca president Joan Laporta said in a statement.

Sixth Street, meanwhile, stand to double their investment based on the most recent official figures relating to television income, which are from the 2020-21 season.

“Our team looks forward to a long-term partnership providing our flexible capital and deep sports sector expertise to support Barca as it continues to strengthen its organization and achieve its strategic objectives,” Alan Waxman, co-founder and CEO of Sixth Street, said.

Barca were paid €165.6m that year, more than any other club in Spain — Real Madrid earned €163m — so if that level of income remains stable, ignoring inflation, the American company would make over €400m from their investment.

The deal with Sixth Street comes after club members authorised the board of directors to sell a stake in merchandising and TV rights.

Negotiations continue to sell up to 49.9% of the subsidiary company Barca Licensing & Merchandising (BLM), which Laporta estimates could fetch around €250m.

Barca also have permission from members to sell an additional 15% of their domestic television rights — up to 25% in total for a maximum of 25 years — which could pocket them a further €300m.



Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Pin It on Pinterest