TARRAGONA, Spain (Reuters) - Spain's top clubs need to raise their expectations so they can fully monetise the potential business around soccer, a top executive from private equity firm CVC Capital Partners said on Wednesday.
The Luxembourg-based fund, which has signed a media rights deal with the Spanish professional soccer league LaLiga for 1.99 billion euros ($2.13 billion) to boost modernisation of the clubs, believes the plan is going in the right direction but expects to see more results.
The deal has secured CVC an 8.2% stake in a new company that will manage revenues from LaLiga's broadcasting and sponsorship rights for 50 years.
LaLiga confirmed on Tuesday that 915 million euros, half of the CVC investment, had already gone to the 38 top clubs which had agreed to accept the money and most of it would finance infrastructure projects and hiring new talent.
"The clubs need to be more ambitious," Juan Arbide, CVC senior managing director, said during a presentation to some 450 representatives of 38 LaLiga clubs at a meeting in Tarragona on Wednesday.
"It is important that the clubs become more global and digital companies, and understand the profile of their fans.
"The priority should be collecting fans' data because is it the key for monetising the business around football for the long term."
LaLiga and CVC are encouraging Spanish clubs to use the funds to refurbish stadiums to attract more fans to games, increase social media followers and invest in technology to collect fans' data in order to be in a better position to negotiate the next television rights deal.
Almost a year after CVC acquired a 13% stake worth 1.5 billion euros in France's Ligue 1 media rights business, it said that the French league was "10 years behind LaLiga" as they were struggling to collect fans' data because no database existed before the deal.
CVC has also invested in Formula 1, Moto GP, cricket, volleyball, rugby and tennis.
LaLiga president Javier Tebas said he expected an increase in their television rights revenues of 11% annually by 2027, when they are due to sign a new deal.
"The time has come to monetise the football game experience," Tebas told reporters on Wednesday.
"In four years we will already notice an increase in revenues from game-day experience, e-commerce and TV rights."
LaLiga expects the total value of its business to increase from 24.2 to 33-35 billion euros in seven to 10 years, and it will help the clubs to invest their share of the money.
The deal approved in December 2021 seeks to increase the value of the business behind the soccer industry, though four clubs -- including Barcelona and Real Madrid -- opted out.
LaLiga expects the Spanish clubs to receive an additional 452.4 million euros this year and the remaining instalment of 454 million during 2024 to finance modernisation projects and infrastructure investments.
Initially, the clubs are spending the CVC funds on reducing their debts and investing in their professional teams.
The so-called "LaLiga Boost" project has rules about where the money can go. Clubs must allocate 70% of it for infrastructure and modernisation projects. Up to 15% can be used to sign players, with the remaining 15% for reducing debt.
Real Madrid, Barcelona, Athletic Bilbao and the Spanish FA have taken legal action against LaLiga over the deal, calling it "an illegal transaction that causes irreparable damage" to Spanish football.
($1 = 0.9362 euros)
(Reporting by Fernando Kallas and Corina Pons in Tarragona; editing by Clare Fallon)
