#3: Big4 Leagues Looking to Raise Offensive Capital Against Premier League

#Bundesliga 2023: Two years ago German football turned its back on private equity, they believed they could drive German football forward themselves despite financial difficulties caused by covid. Two years on German football now fears becoming irrelevant and falling behind La Liga and Ligue 1 after seeing them thrive after liquidity injection provided by CVC. Now united in the?pursuit for fresh liquidity DFL hopes to sign a deal worth around €2.7bn within five months, in exchange for a 10 - 15 per cent stake in the holding company that controls the media?and global commercial rights. The 36 clubs are yet to agree on a distribution model.

#LaLiga 2022: CVC paid €1.994bn for an 8.2 per cent stake in future earnings into a new company that will hold LaLiga’s commercial rights / audio-visual right for the next 50 years, four clubs (Barca, Real Madrid, Athletic Bilbao & Oviedo), rejected the deal as they believed this deal undervalued the rights and was too long. Liquidity is structured so that 70 per cent can be used for infrastructure or innovation development, 15 per cent to refinance / pay-off existing debt and 15 per cent on squad development. Atletico Madrid will receive €200 million, Real Sociedad, Villarreal and Betis around €100m, smaller outfits Getafe, Alaves & Levante €70m, and clubs Mallorca, Elche and Rayo Vallecano €25-30m. La Liga estimate 60 per cent growth over 15 years

#Ligue1 2022: CVC committed €1.5 billion for 13.0 percent of a new joint commercial subsidiary with France's Ligue de Football Professionnel. French clubs were under financial pressure after the collapse of the Mediapro broadcasting deal and Covid-19 restrictions. PSG will get €200m Marseille, Lyon, Monaco, Rennes, Lille, Nice €80m, rest of Ligue 1 clubs €33m, €170m to the French government to repay a loan made to sustain clubs through the pandemic. €100m to cover costs for the joint venture. CVC will take no dividend until 2025.

#Serie A: CVC approached Serie A in 2021 before securing deals with LaLiga and Ligue 1 but seven clubs could not agree, rejecting €1.7bn in return for 10%. Fear of Missing Out, clubs will be returning to vote for a new deal with a host of lenders listed offering three options 1) league wide credit facility, 2) equity capital in a company holding Serie A's media rights, 3) would combine equity and debt. Serie A clubs will decide this latest offering later in March 2023.

The race to keep pace with the PL has started but at what cost.