February 8 – In what looks likely to be the first deal of its kind for one of Europe’s big clubs, Real Madrid is poised to sell its internet image rights for 10 years to US investment Providence Equity Partners for €500 million.
Spain’s El Confidencial reports the negotiations have been on-going for two weeks via intermediary Key Captial Services.
The detail of the negotiation is unclear but it looks like the key equation for the club will be whether it feels that selling the rights lock, stock and barrel (though presumably with provisions for inventory for their own club sponsorship sales) will be worth more to them than monetising the rights on their own. For the club it means a guarantee of income and no requirement to spend money developing their internet product – though lack of control may be an issue.
If it comes off the deal could provide a timely boost for president Florentino Pérez who will be up for re-election at the end of the season.
Real Madrid was listed as the third richest club in the world in the latest Delotte Football Money League. The club had previously dominated this ranking but despite a Champions League win has dropped behind Manchester United and Barcelona.
Providence Equity Partners owns 25% of the Soccer United Marketing (SUM) agency. SUM represents the MLS exclusively as well as the US national team. It also holds CONCACAF and Mexican national team rights.
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