Joan Laporta

[mc_lovin]

From what I have read, the deal proposed by Florentino is just a loan with no stipulations and specifications on how clubs should spend it and there is still a requirement of clubs to transfer portions of their audiovisual rights to a collective "special purpose vehicle", not sure what it means and how it will work. A lot of wishy washy stuff. Also the difference between capital injection (CVC) vs. straight loan/debt (deal proposed by Real Madrid), I reckon that I don't fully comprehend.

If we don't want to participate in the CVC, fine, but why try to ruin it for other clubs? And playing wingman and second fiddle to Florentino every step of the way since he took over the club, hmmm...

I read somewhere that the CVC deal is essentially a loan with an 8-10% interest rate, which makes a lot of sense--> clubs get money and pay it back over 50 years (in the form of TV rights). It's not free money (not that anyone ever implied it was ).

I guess the problem for most Spanish clubs is that they can't get loans on their own - even for bad interest rates like 10%, so they take the deal. Barcelona evidently has no problem with that (see the Goldmann Sachs deal). Neither has Real. If Perez now can get a collective loan for the League with 3% interest that could make an awful lot of sense as an alternative.

 

[Luftstalag14]

I read somewhere that the CVC deal is essentially a loan with an 8-10% interest rate, which makes a lot of sense--> clubs get money and pay it back over 50 years (in the form of TV rights). It's not free money (not that anyone ever implied it was ).

I guess the problem for most Spanish clubs is that they can't get loans on their own - even for bad interest rates like 10%, so they take the deal. Barcelona evidently has no problem with that (see the Goldmann Sachs deal). Neither has Real. If Perez now can get a collective loan for the League with 3% interest that could make an awful lot of sense as an alternative.

It doesn't appear to be just a straight loan, clubs still seem to be ceding away portions of their audiovisual rights as probably collateral or additional price to entice the cohorts of investors (JPMorgan, Bank of America and HSBC). However, for the sake of discussion let's say it is just a loan with 2.5% or 3% interest rate, sounds very good on paper (kind of too good to be true, what's it it for those investors and creditors?), my reservation with a straight loan is that clubs can spend them however they'd like, for example, squandering it on buying players or paying off existing debt, instead of investing in infrastructure, digitalization and growing the brands etc., things that La Liga wants the clubs to do under the CVC deal to grow the league.

 

[DonAK]

Don't have the full details, but there's a reason both Germany and Italy rejected the CVC deals. The interest rate alone here makes it a better deal.

Barca, Real Madrid and Athletic are the three biggest teams historically in Spain, even though Atleti have a couple of more league titles than Athletic. The rest of the teams will be wise to take our advice and ditch the CVC deal.

 

[messi2140]

I read somewhere that the CVC deal is essentially a loan with an 8-10% interest rate, which makes a lot of sense--> clubs get money and pay it back over 50 years (in the form of TV rights). It's not free money (not that anyone ever implied it was ).

I guess the problem for most Spanish clubs is that they can't get loans on their own - even for bad interest rates like 10%, so they take the deal. Barcelona evidently has no problem with that (see the Goldmann Sachs deal). Neither has Real. If Perez now can get a collective loan for the League with 3% interest that could make an awful lot of sense as an alternative.

The interest is apparently 3 percent.

https://www.realmadrid.com/en/news/...elona-and-real-madrid-c-f-to-all-laliga-clubs

Honestly having a quick glance this new deal is literally better in every aspect. Expecting a few Tebas rants in the upcoming days

 

[DonAK]

It doesn't appear to be just a straight loan, clubs still seem to be ceding away portions of their audiovisual rights as probably collateral or additional price to entice the cohorts of investors (JPMorgan, Bank of America and HSBC). However, for the sake of discussion let's say it is just a loan with 2.5% or 3% interest rate, sounds very good on paper (kind of too good to be true, what's it it for those investors and creditors?), my reservation with a straight loan is that clubs can spend them however they'd like, for example, squandering it on buying players or paying off existing debt, instead of investing in infrastructure, digitalization and growing the brands etc., things that La Liga wants the clubs to do under the CVC deal to grow the league.

Why should we be responsible for clubs wasting the money they get? No one from Spain are helping us with the messy situation we're in.

 

[messi2140]

Just this part is enough to take the new deal proposed by Florentino


-the total financial cost of the LaLiga Impulse Project, which would be assumed by Spanish clubs over 50 years, would amount to 13.1 billion euros, in exchange for a total investment by CVC of 2 billion euros (which, in addition, would not be paid on the first day, but in installments over 4 years), and

-The total financial cost of the Sustainable Project, which would be assumed by the Spanish clubs for 25 years, would amount to 900 million euros, in exchange for a total investment of 2 billion euros by the funders (which, in addition, would be paid in full to the clubs in the first year, without any instalments);

as a result, according to the "base case" presented by LaLiga and CVC, the Sustainable Project would save Spanish clubs 12.2 billion euros, making it a proposal that is 15 times more economical and which, additionally, only includes commitments for 25 years, and not 50.

 

[Luftstalag14]

Why should we be responsible for clubs wasting the money they get? No one from Spain are helping us with the messy situation we're in.

Because it is in our interest to see the league grow. Clubs wasting money does not help grow those clubs and the league suffer as a result (we are a prime example).

 

[DonAK]

Because it is in our interest to see the league grow. Clubs wasting money does not help grow those clubs and the league suffer as a result (we are a prime example).

There's a lot of steps La Liga can do to make the league grow.

Like for example....maybe they shouldn't have sold the tv rights to La Liga in the USA to a premium channel that very few people have just for a few more bucks? Luckily they went away from beIN Sports to ESPN now, but now there's barely any big name players in the league. They could also do what the Premier League do and make the colours brighter and more vibrant on the broadcast and modernize the broadcasting of the games itself, they could improve their standard of refereeing both on the field and in the VAR room, they could not change dates and times of a game literally days before and mess up the plans of traveling fans, etc,

As for the teams itself then a lot of Spanish teams are solid infrastructure wise. The reason the league isn't growing at the rate people expect is literally due to the league itself messing up so many things and more or less wasting the golden period of a Messi led Barca vs a Ronaldo led Real Madrid they had.

 

[DonAK]

I have a feeling a lot of people within LaLiga including Tebas are delusional and have been messing up one negotiation after the other. Taking a bit more money from some shady new channel that go defunct months later and being in a spot where you don't have games broadcasted on mainstream channels in big markets like the UK.

 

[Luftstalag14]

There's a lot of steps La Liga can do to make the league grow.

Like for example....maybe they shouldn't have sold the tv rights to La Liga in the USA to a premium channel that very few people have just for a few more bucks? Luckily they went away from beIN Sports to ESPN now, but now there's barely any big name players in the league. They could also do what the Premier League do and make the colours brighter and more vibrant on the broadcast and modernize the broadcasting of the games itself, they could improve their standard of refereeing both on the field and in the VAR room, they could not change dates and times of a game literally days before and mess up the plans of traveling fans, etc,

As for the teams itself then a lot of Spanish teams are solid infrastructure wise. The reason the league isn't growing at the rate people expect is literally due to the league itself messing up so many things and more or less wasting the golden period of a Messi led Barca vs a Ronaldo led Real Madrid they had.

La Liga did many things right though, for example La Liga Tech, eLaLiga and expanding footprints around the world (struck a better deal in Mexico and Central America recently), it is making the league more visible. Certainly still a long way to go to match the EPL.

The league can only do so much, the clubs themselves have to do more. Many clubs were supposed to use the CVC money to build their sports city and investing on digital content to wane themselves off matchday revenue as required by La Liga, let's hope if this deal from Florentino torpedoes the CVC, clubs will do the right things too.

 

[mc_lovin]

The numbers are so ridiculously tilted towards the Barcelona/Real/Athletic deal that there should be zero discussion.

Maybe the devil is in the detail, but I can't see how the CVC deal can overcome that alone.

 

[Luftstalag14]

The numbers are ridiculously tilted towards the Barcelona/Real/Athletic deal. There should be zero discussion.

Maybe the devil is in the detail, but I can't see how the CVC deal can overcome that alone.

Indeed the saving on interest itself looks very appealing. The letter published by the three clubs said no infringement on the audiovisual rights but the Spanish press (such as 2Playbook) says otherwise. There has to be something lucrative ceded to the investors/creditors in order for them to agree to a collective, huge loan with a low interest rate like this. I don't think it is as simple as what the letter says.

 

[Sterlingfan2000]

He seems to be Perez dog nowadays

 

[khaled_a_d]

Just this part is enough to take the new deal proposed by Florentino


-the total financial cost of the LaLiga Impulse Project, which would be assumed by Spanish clubs over 50 years, would amount to 13.1 billion euros, in exchange for a total investment by CVC of 2 billion euros (which, in addition, would not be paid on the first day, but in installments over 4 years), and

-The total financial cost of the Sustainable Project, which would be assumed by the Spanish clubs for 25 years, would amount to 900 million euros, in exchange for a total investment of 2 billion euros by the funders (which, in addition, would be paid in full to the clubs in the first year, without any instalments);

as a result, according to the "base case" presented by LaLiga and CVC, the Sustainable Project would save Spanish clubs 12.2 billion euros, making it a proposal that is 15 times more economical and which, additionally, only includes commitments for 25 years, and not 50.

It seems Perez and Laporta has done Tebas job better than Tebas himself

 

[Luftstalag14]

I doubt Laporta himself had anything to do with the culmination of this proposal, the same with Athletic Bilbao, they probably just went along with Real Madrid. It has been all Florentino Perez, two of the the three supposed investors, JPMorgan and Bank of America have worked with him in the past and are currently the biggest creditors of Real Madrid.

Since Goldman Sachs and JPMorgan are competitors, I hope us getting onboard with this will not jeopardize our relations with Goldman Sachs, our biggest creditor. We need them to help us secure funding for the New Camp Nou.