December 11 – A loan of €67 million has been agreed with 11 clubs, most in LaLiga’s second tier, to help them financially manage their way through the challenges of the Covid-19 pandemic.
The loan will give the clubs more liquidity and will be split evenly between clubs in LaLiga SmartBank, as well as those clubs recently promoted to the toip tier LaLiga Santander for the 20/21 season 11.
LaLiga has been working with its clubs for some time over introducing new forms of financing. It said that this is the first time that this size of Spanish club has been able to secure these kinds of financial terms.
The five-year loan is with Rights & Media Funding Limited who are the sole lender and were chosen from several prospective lenders.
“Securing this type of loan is clear evidence of the financial stability and confidence in the future of Spanish clubs and LaLiga,” said Jose Guerra, LaLiga general managing director.
“This transaction opens a door to a new financing channel in which clubs can enter the market in a coordinated manner, obtaining a more solid structure and therefore more attractive financing conditions.”
The loan finance structure is secured against the monetisation of the clubs’ share of audiovisual rights that are marketed by LaLiga. The loan period will take them beyond the current domestic audiovisual rights contract.
LaLiga said that it demonstrates the confidence in LaLiga’s commercial proposition, as well as in the competition’s different rights buyers.
Secured with the help of Rights & Media Funding Limited lawyers Bryan Cave Leighton Paisner LLP (BCLP) in London and Toda & Nello Abogados in Spain, the loan structure is being touted as a way forward for other clubs to secure new sources of finances.
BCLP Partner and Co-Leader of Commercial Disputes Graham Shear said: “This is a hugely significant moment for both LaLiga and the world of football. We are delighted to have been able to successfully advise Rights & Media Funding Limited on one of the first major loans to a top European league. As a longstanding and valued client we are thrilled that their success will pave the way for them into new financing structures in other leagues.”
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