BARCA AGREE 10% SALE OF LALIGA TV RIGHTS TO EASE FINANCIAL WOES
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The international investment company Sixth Street agreed to purchase 10% of Barcelona’s LaLiga broadcast rights for €207.5 million over a 25-year period, the Catalan club as announced on Thursday.
By signing the agreement, Barca were able to end the financial year, which ends on June 30, with a little profit rather than a loss for the third consecutive year.
However, sources have played down the idea the cash injection will lead to more activity in the transfer market. They say further commercial deals, player departures and reducing the wage bill are still the immediate concerns.
Barca’s top priority was to avoid finishing the 2021–22 campaign with losses, while the agreement might eventually allow them to exceed their -€144 million LaLiga expenditure cap — the only one 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.
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