Clubs Gather To Boost LaLiga
fcbusiness joined LaLiga clubs in Tarragona for two days of workshops and discussion as they continue their CVC investment to improve their infrastructure and business standings.
Spain’s clubs in LaLiga’s two tiers are making ambitious strides forward as they continue to invest the money accessed via CVC’s Boost LaLiga fund. To the tune of nearly €2bn, the investment from CVC Capital Partners in exchange for an 8.2 per cent stake in LaLiga’s future media rights for the next 50 years, is set to make a lasting impact in Spanish football.
Initiated in 2021 and now with 44 member clubs, it’s not without its critics and has been rejected by Real Madrid, FC Barcelona and Athletic Bilboa – all of whom have been indifferent to the need for the investment and have taken legal action against it.
However, despite their misgivings, both FC Barcelona and Athletic Bilboa had representation at the third Boost LaLiga event in Tarragona, attended by nearly 600 delegates, designed to promote best practice among clubs as they continue with their investment plans.
The project is currently focused on eleven verticals which include technology, HR, communication, internationalisation, digital strategy, brand strategy, marketing and commercial, infrastructure (technical &business), grassroots and CSR.
Under the strict rules, member clubs can only spend 15 per cent of their share of funds on player registrations, and 15 per cent on debt restructuring. The remaining 70 per cent can be used for strengthening club infrastructure such as stadium renovations, training grounds, technological innovations and internationalisation plans.
And it’s in these areas that clubs are playing their hands well. Over €1.3bn has been received with around 75 per cent already distributed and nearly €400m pending; clubs across the two leagues have been ambitious in their plans for growth.
Via LaLiga’s Clubs’ Office headed by Director, Jaime Blanco Manrique, they are provided with an in-house consultancy and advisory service that is helping them steer their way through this crucial period of investment. Providing advice and guidance around projects, this expertise is a crucial aspect of the clubs’ accelerated growth plans.
A key aspect of the Clubs’ Office work is to benchmark all areas of the business, providing highly detailed reports which are helping to drive best practice and offer project monitoring and KPI’s.
As Sevilla FC President, Jose Carrasco said: “we now have someone on the outside giving advice” and that “the bigger LaLiga is, the bigger we all are and the bigger Sevilla is!”
It’s a sentiment Las Palmas General Manager, Patricio García echoed, stating: “we are going against the grain” and that the “growth is expansive” noting that they now had a new way to develop the club. Although there is still much more work to do, there are clear signs that the investment is already having an impact.
As LaLiga President, Javier Tebas outlined, commercial revenues across the league were up €350m, match attendances across both leagues have grown to 8 million people, representing an attendance rate of 73.7%, an increase of 4.9% compared to the same period last season and LaLiga’s social media following is now 40m higher than the previous season. This is adding up to a strong basis for growth which member clubs are fully committed to, but as Tebas noted: “we cannot do it overnight”.
The mood in Tarragona was one of collective action for the good of the league and it’s no secret that Tebas’s ambition to close the gap between LaLiga and the Premier League. But LaLiga’s clubs still lag way behind the Premier League and Bundesliga in many areas of business. However, this is set to change as they place more emphasis on developing their business operations expertise. And this is being helped by the increased professionalisation and focus on employing the very best business talent through LaLiga’s Talent Office which provides clubs with resources in this area.
The Talent Office holds a pool of potential candidate CVs available to clubs to bolster their business workforce whilst providing support for the development and restructuring of their business departments. This is, as LaLiga notes, all aimed at accelerating growth by “20 years” and has sparked a nationwide infrastructure and business operations development boom.
As CA Osasuna Director General, Francisco Canal, remarked: “business used to be flat and facilities needed to be improved but we didn’t have the resources. Plans often changed as a result of things on the pitch. We no longer have to make drastic decisions.”
That sentiment was shared by Cadiz CF President, Manuel Vizcaino who said: “we are reinventing ourselves as a business – we no longer look at just 30days in the season, we work for 365 days a year. We have to learn how to generate revenue regardless of our position. That’s what is leading us to grow.”
In the coming issues of fcbusiness we will take a closer look at some of the projects being undertaken around the country featuring Atletico Madrid, RCD Mallorca, Sevilla and Real Betis.
Images: LaLiga
