PSG will receive 200 million CVC

Yesterday, Thursday, we learned about the economy’s new controls UEFA limiting to 70% the total income of clubs on wages or transfers from European clubs. A control aimed at preventing imbalance between clubs, starting with considered state clubs. Among them will be PSGthe big threat next to Manchester City in Europe.

Surprisingly, the Parisian club will receive another injection of money, in addition to what it already has. This money will come from the Ligue 1 agreement with CVC where the fund will participate in 20% of a new commercial subsidiary, which manages the media rights business of the French league, and is worth approximately 1,500 million euros.

It is still a little while before the end of this operation, which began in December. In the absence of that specific signature, the French Professional Football League (LFP) will soon close these exclusive negotiations with CVC’s investment fund for the creation of a commercial company that will allow it to sell its rights. .

A commission of six clubs, Paris Saint-Germain, Olympique de Marseille, Lyon, Reims, Lorient and Montpellier, conducted these negotiations. Negotiations delayed due to PSG. Until the Parisian club gave the green light to the operation.

Of the 1,500 million that CVC will pay for 13% of the television rights, clubs will receive approximately 1,100 million. The rest will serve to reimburse the credits guaranteed by the State at the worst moment of the pandemic, to pay part to the French Football Federation and to build up a reserve of 100 million for possible future crises.

The deal values ​​the company selling French Professional Football League (LFP) rights at 11,500 million. This is less than half of what the Spanish League agreed to in the same investment fund, valued at 25,000 million.

Just one week ago, the general meeting of the French LFP approved the creation of this commercial subsidiary in which Luxembourg investment fund CVC Capital Partners will take a 13.04% stake, which will contribute 1,500 million euros.

PSG could receive, according to earlier reports, between 300 and 350 million euros as it contributes to 34% of the French league’s revenue. But it chose to lower its quota to 200 million euros, that is, 17% of the total,

In addition, each Ligue 2 club will receive approximately 1.5 million euros in 2022-2023 and the same amount next season. And we will also give € 16.5 million to each of the French Second Division clubs promoted to the top flight at the end of the season.

Germany and Italy are also considering seeking external funding

According to the latest UEFA report, there are as many as 28 countries where a separate league entity is entrusted with managing the commercial rights of the first division in question. In the other 26 countries, national authorities associated with the association are responsible for this work. In total, 14 of the top 15 major leagues in Europe by revenue have separate league entities that manage commercial operations and management.

Starting with the Spanish league, along with its agreement with the CVC in which the CVC fund will contribute nearly 2 million euros in exchange for 8.2% of the commercial rights.

Italy is also considering the option of an investment fund. In November 2020, the Series A board agreed to sell a 10% stake in a new entity created to manage all rights issues and any commercial interests overseas. An agreement was reached to sell that stake to private equity firms CVC and Adviento for 1.7 billion euros. The deal was subsequently blocked due to insufficient approval from the clubs.

The Bundesliga is also considering a similar fund. In the first half of 2021, the German Football League actively sought to sell a 25% stake in a new subsidiary created for the marketing and sale of international rights products. However, all initial offers and discussions were postponed.