Financially struggling club Barcelona have agreed to sell 10 percent of their television rights over the next 25 years to US investment fund Sixth Street for 207 million euros.
“Through this process, Barcelona is enjoying a total capital gain of €267 million for the current season,” Barcelona said in a statement.
In the event that both parties fail to reach this agreement, Barcelona were expected to end “the financial year with a loss of 150 million euros,” according to the Catalan sports newspaper Sport.
The Sixth Street Foundation will receive 10 percent of payments from the Spanish football league La Liga in exchange for television rights.
“We will activate economic levers and implement our strategy, which requires patience, sustainability and efficiency to strengthen the club’s financial base,” said Barcelona president Joan Laporta.
In the same context, Alan Waksman, CEO of the American Foundation, commented: “We believe in the strategy implemented by Joan Laporta and FC Barcelona. We are proud that one of the most successful football clubs has chosen us as their partner and provider of capital solutions.”
The sale of television rights is one of two financial levers approved last week by the Socios Catalunya (the club’s fans) at a general meeting to try to quickly increase the club’s income and allow it to close deals next season.
The club can sell up to 25 percent of the income from TV rights for a maximum of 25 years and can therefore look for a buyer for the remaining 15 percent.
Sosius also agreed to sell 49.9 percent of BLM, the club’s company responsible for promotion and specifically running the club’s stores.
“Thanks to these operations, we will again have surplus funds,” Laporta told Socios when he asked them for permission to carry out these operations.
“We will repay the debt within reasonable limits and will be able to make the necessary investments to make our club more competitive,” he added.
Source: AFP.