Barcelona and LaLiga have agreed a record-breaking €2.7bn deal for the transfer of Lionel Messi from the Catalan club to the Spanish league, with an announcement expected on Wednesday.
Barcelona is the latest club to have announced a new deal with Lionel Messi. The Spanish side has been boosted in their contract saga as LaLiga announces a €2.7 billion deal.
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Barcelona’s attempt to sign Lionel Messi to a new deal with LaLiga has been boosted after the league announced a €2.7 billion ($3.2 billion) financial infusion on Wednesday.
LaLiga has agreed to sell a 10% stake in a newly created company that will house the majority of its operations to CVC Capital Partners, a private equity group. The league’s executive committee and clubs must yet approve the transaction.
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Approximately 90% of the funds will go to Spanish clubs, including women’s, semi-professional, and non-professional football. Although it is a long-term loan, a source claimed the clubs are “delighted” since it would help them get out of a financial quagmire created by the coronavirus epidemic.
According to another source, depending on the procedure for accessing the money, Barcelona and Real Madrid will each get over €250 million.
“It will be allocated based on the contributions that the teams have made since the centralisation of audiovisual rights in 2015, a pivotal point in LaLiga’s rise,” a league source said. “It doesn’t look at a particular point in time, but rather the average condition of the teams over the past seven years.”
However, according to a league source, the financial infusion is intended to help the teams prepare for the future, with the league requiring the clubs to agree to a strategy that focuses on improving their physical infrastructure and brands.
The teams must spend at least 70% of the money on long-term growth initiatives, 15% on debt refinancing, and 15% on exceeding their league-imposed spending restrictions.
Since the epidemic, Barca’s spending cap has plummeted, dropping from more than €600 million in 2019-20 to a projected €200 million for the following season. However, a league source stated that the restrictions would be “slightly modified” in Wednesday’s agreement.
After his contract with Barcelona expired, Lionel Messi became a free agent. JOSEP LAGO/AFP/Getty Images/JOSEP LAGO/AFP/Getty Images/JOSEP LAGO/AFP/G
As ESPN reported in July, an agreement on a new contract with Messi, who has been a free agent since his last contract ended on June 30, is in place, but the announcement has been delayed because Barca cannot yet register the deal while adhering to LaLiga’s financial regulations.
They must also cut their salary cost in order to sign new players Sergio Aguero, Memphis Depay, Eric Garcia, and Emerson Royal for the next season.
Barcelona want to finalize Messi’s new contract before Sunday’s Joan Gamper Trophy match against Juventus, according to a source, and Thursday “may be a crucial day.”
Real Madrid and the other of Spain’s top-flight teams will be grateful for the funds as they battle the ravages of the coronavirus epidemic and play matches behind closed doors.
The initiative is dubbed ‘Boost LaLiga,’ and according to a league source, it will help the competition close the gap on the English Premier League over the next decade.
The partnership with CVS will result in the formation of a new company to which LaLiga will contribute all of its companies, subsidiaries, and joint ventures, as well as a minority share of about 10% in which CVC will invest.
CVC also contributes money to LaLiga via a participation account, a long-term arrangement that matches LaLiga’s, the clubs’, and CVC’s interests. LaLiga will retain all of its sporting duties as well as the organization and administration of audiovisual rights sales under this new business.
“The deal values LaLiga at €24.25 billion, a price tag that recognizes LaLiga’s position as one of the world’s most prestigious sports tournaments,” the league said in a statement.
The Serie A teams in Italy rejected a 10-percent broadcast rights agreement with CVC Capital Partners earlier this year, which would have netted the league $2 billion. ESPN and LaLiga signed an eight-year deal in May to broadcast English and Spanish-language matches in the United States. The agreement will go into effect this month.
This article was co-written by Rodrigo Faez.
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