FC Barcelona has announced the sale of 10% of their La Liga broadcast rights to investment group Sixth Street for up to $278 million.
Sixth Street will make a €207.5 million ($216 million) initial investment in the Catalans in exchange for a 10% share of their La Liga broadcast rights over the following 25 years.
The deal, according to the club, will result in a total capital gain of €267 million ($278 million) for the current campaign.
“We are activating the economic levers and executing our patient, sustainable and efficient strategy to strengthen the Club’s financial base,” said president Joan Laporta while announcing the deal.
“Sixth Street is a strong supporter of football, is an experienced sport and global media investor, and as a partner will bring significant knowledge and resources while allowing us to independently manage our operations,” he claimed.
The co-founder and director of Sixth Street, Alan Waxman, stated in the same press release that his company supports the tactics Joan Laporta and FC Barcelona are using and is honored that “one of the most successful clubs in football has chosen us to be their partner and provider of capital solutions.”
“Our team looks forward to establishing a long-term partnership by giving our flexible financing and substantial experience in the sports industry to support Barca as it continues to build its organization and realize its strategic goals,” Waxman continued.
Using its “long-term, flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth,” Sixth Street is a “global investment firm with over $60 billion in assets under management and committed capital,” according to Barca.
The transaction occurs at a pivotal point in the club’s history. For the next 2022–2023 season, the Blaugrana need to raise money to recruit new signings.
Their top targets are Leeds United winger Raphinha and Bayern Munich forward Robert Lewandowski.
It also indicates that Barcelona are not going to accept La Liga’s CVC proposal, just as fierce rivals Real Madrid did last year, during the same summer that Lionel Messi signed a free agency contract with Paris Saint-Germain.
Sixth Street is a multinational investment company with over $60 billion in committed capital and assets under management. Its goal is to provide businesses in all growth stages with solutions, and it has a track record of collaborating with some of the top sports organizations in the world.
Due to their circumstance, their capital investment in Barcelona is welcome. Barcelona is eager to make improvements to their team this summer in order to catch up to their longtime rivals Real Madrid.
Last season, they came in second in La Liga, 13 points behind Madrid, who also won their 14th Champions League championship. In essence, Barcelona is taking calculated chances to keep themselves competitive.