Today, I bring to you a wonderful topic titled CVC, and it's influence on la liga. This discussion will feature the following;
- Meaning of CVC.
- The influence of CVC on la liga.
What Is CVC?
CVC is a global network comprising of 600 people, 43 nationalities working in 24 offices scattered around the world. Which head by leaders with immense knowledge on investment selection and value selection. It's a multiple, team-based environment, with chances to widen the ability to comprehend and expertise by moving across investment strategies, markets and geographies.
It was established in the year 1981, and is currently among world leaders when it comes to private equity and credit. They're currently managing $114.8 billion assets, $162.7 billion of funds committed.
In the last 20 years, they greatly invested in sports. Among this sports are world Moto Championship, F1 and Sky Bet. They invested 300 million US dollars earlier this year in Forming a joint venture with the International Volleyball Federation and that'll give them access to operate in international volleyball events jointly. They also spent 500 million on march to buy 1/7 equity in the European Six Nations Rugby Tournament.
The Influence Of CVC On La Liga
On the 4th of August, LaLiga announced an agreement with CVC that will raise a fund of 2.7 billion euros into the competition and its clubs😮.
That sum made me salivate.
Now, here comes the big question;
What for🤔?
Well here comes your answer.
This investment plan, that was approved today at a meeting by the league’s Executive Committee (Comisión Delegada), will provide LaLiga and the Clubs with all the essential wealths needed to fulfil its future plans to become one of the leading global players in the digital entertainment market, at the same time strengthening the competition and giving the fans a far more better experience.
It's very obvious and I can proudly say that laLiga is already on their way to making it to a point of being called a global player, with best entertainment content, strong digital presence, ability to apprehend and analyse data which boosts direct multichannel relationship with fans around the globe, as it's striking features. Now imagine what will happen to la liga if this deal comes through.
In a more striking detail, I'll love the explain it this way. I once said that this CVC is a joint venture company that will help La Liga in promoting their future broadcasting and commerce. They'll earn 10% of the shares of the joint venture without getting involved in any la liga games.
If this deal works out, barcelona and real Madrid will probably be given between 270 and 261 million euros respectively. But the big problem lies on the fact that only 15% of the money will be in raising players salary cap, because the building of infrastructures, compensation, debt payment and other operational purposes are the real reason for the deal.
Knowing fully well that the problem with spanish teams is focused on the lack of quality players and this deal is centered only on infrastructures and other materials things.
Hmmmmm.
This is something difficult to say.
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