A few days ago, the LFP announced that it had reached an agreement with the CVC investment fund for the sale of part of its trading company for around 1,500 million euros. The Challenges newspaper gives the first details of these negotiations while L’Équipe announces discussions that promise to be laborious, not all clubs having the same interests. The 30% share that would go to PSG is not unanimous.
In an attempt to get French clubs out of their over-indebtedness, the Professional Football League has chosen to enter “in exclusive negotiations” with the Luxembourg investment fund CVC Capital Partners for its commercial company whose objective will be to sell the rights to the French championship. The LFP will thus sell 13% of this company to CVC for 1,500 million euros, which will value it at 11,500 million euros. It is a capital decision to rescue the coffers of the LFP worth 1,100 million euros. Especially since the Luxembourg fund promises to remain at least four years in the capital of the new subsidiary of the LFP.
Ligue 1 sells better than LaLiga
According to someone close to the dossier cited in Challenges, “the favorites have won the bet”having offered CVC better financial and legal conditions than all its other competitors. “There was no game because the proposed valuation of Ligue 1 was better, as well as the requested future dividend, or the business plan”. For its part, the LFP would be very satisfied with this agreement. Indeed, the auctions have allowed the French championship to be better valued than LaLiga, a championship in which CVC also has part of the commercial company. The LFP obtained 15 times the EBITDA (results before interest, taxes and amortization) according to Challenges, compared to 12.5 for the Spanish league.
The newspaper specialized in economics also details the three payment terms that will help French clubs that are at risk of losing 600 million this year, they specify. The first should arrive this summer after a vote by the LFP general assembly and an opinion from the economic and social committee. The next two will take place after the first year and after the second year of the contract, indicates Desafíos. In the long term, CVC intends to more than double Ligue 1’s turnover with the aim of selling the rights to the championship for €1.8bn over 10 years. His plan is to better export the rights internationally.
What place for PSG?
However, the negotiation phase between the commercial company of the LFP, which should be chaired by Vincent Labrune, and the French clubs could be laborious, reports L’Équipe. The working group, made up of PSG, OL, OM, Lorient, Montpellier, Reims and Bernard Joannin to represent Ligue 2, meets today for the first time with CVC representatives to start discussions on the distribution of the sums and their use , informs L. ‘Equipe.
Tomorrow the Ligue 1 clubs will debate together in what promise to be painful debates, all clubs obviously not having the same interests. Indeed, PSG could take the biggest piece of the cake with 30% of the sum (450 million euros), the main argument being its international influence that serves the entire Ligue 1, and its weight in the total turnover of the championship. A problem already found in Spain with Barça and Real…