, with €220m disbursed to clubs){kind=link}
LaLiga, the organising body of the top two tiers of Spanish club football, has announced the creation of LaLiga Group International, the holding company that will coordinate LaLiga Impulso, a new investment venture agreed between the league and private equity firm CVC Capital Partners.
LaLiga in a statement said the creation of the new company would deliver a new financial injection of €298m ($338m), with €220m disbursed to clubs that form part of LaLiga Impulso and the remaining €78m to go to strategic projects promoted by LaLiga Group International.
It marks the second cash injection since the launch in 2021 after the €400m payment in mid-January. The two injections represent 35 per cent of the €1.994bn agreed as part of LaLiga Impulso.
Read Also: Vivo Signs Strategic Sponsorship with LaLiga in Move into Spanish Market
In January, European Union competition authorities gave the green light to LaLiga Impulso, allowing the flow of money from the venture to begin to reach participating clubs. LaLiga Impulso was earlier approved at a general assembly meeting of LaLiga, with 37 of the 42 teams voting in favour of the project.
The first €1bn of investment will have been received by July, with the remaining capital due across 2023 and 2024 – a move the league said will accelerate clubs’ modernisation strategies by 20 years.
LaLiga has now transferred its business areas to the new LaLiga Group International holding company. In doing so, and with the help of CVC, the league expects to achieve “maximum growth and modernisation” in the medium and long term.
Javier Tebas, LaLiga president, said: “This agreement, a first for professional sports in our country, will provide LaLiga clubs with the necessary boost to fast forward 20 years in terms of professionalisation and development.”
LaLiga confirmed that €394m of the first €400m of investment has already been made available to clubs, with 39 per cent of this sum earmarked for growth investments.
The funds will be used for improving stadiums and sports complexes, adapting pitches to meet television regulations, and other projects. Thirty-four per cent will be used by clubs and public limited sports companies to pay off debt.