Goldman Sachs Cashes In On La Liga Financing

Goldman Sachs is raising $1.17 billion to fund CVC Capital Partners’ equity deal with La Liga while also reportedly organizing a $615.8 million credit facility for FC Barcelona.

Barcelona will use the cash influx to refinance debt and improve liquidity. The team saw superstar Lionel Messi leave for Paris Saint-Germain this week because it could not afford to keep him.

• The CVC deal was approved on Thursday with 38 out of 42 teams voting in favor.
• It provides $3.17 billion to La Liga and its teams in exchange for 11% of the league’s broadcast and sponsorship rights for 50 years.
• On Thursday, CVC altered the terms of the deal to allow clubs to opt out. 

Barcelona and Athletic Bilbao opposed the CVC deal and Real Madrid has said it will take legal action to stop it. La Liga president Javier Tebas said that if those clubs three opted out, the CVC investment would likely be between $2.47 billion and $2.58 billion.

This is not Goldman Sachs’ first foray into financing European soccer. 

In 2017, it created a corporate structure that allowed AC Milan and AS Roma to issue bonds against their sponsorship and media rights.

The bank also advised AS Roma during billionaire Dan Friedkin’s takeover of the club last year and led bridge financing for Tottenham Hotspur’s new $1.7 billion, 61,500-seat stadium.