An unlikely alliance between Real Madrid and Barcelona

The scoreboard will be released this week from WimbledonAmong them, the rate of loss of star names is higher than John Isner Serve. Serena Williams, Emma Raducanu and Andy Murray Day 3 all exits while 2021 runners-up Matteo Berrettini Had to drop out of school after catching Covid. Those quick departures did little to increase disappointing tournament attendance.The average crowd is down 10% from 2019 so far, and even the sacred center court Already haunted by an empty green seat. Roger Federer‘s absence was strongly felt.

This week we focus on Spanish football, ill-fated consequences Premier League An interesting new alliance has been formed between the two biggest clubs in the country.We look at how golf institutions are circling the wagon in response to the arrival of Saudi-backed men Liv Golf travel. Read on. — Josh Noble, Sports Editor

An unlikely alliance between Real Madrid and Barcelona

Real Madrid: Beating financial rivals © Reuters

battle between real Madrid and FC Barcelona It is one of the most intense movements in sports.Their fixtures are so intense that they are simply called classic. Their supporters have historically been divided not only on the pitch but also ideologically, politically and culturally.

This week, however, the two sides found something unlikely in common: Negotiations new investment in Barça’s media rights.On Thursday, the Catalan club announced the US private investment company sixth street partners Over the next 25 years, the company acquired a 10 percent stake in its broadcast revenue, worth a little over 200 million euros.The deal adds to Sixth Street’s growing sports portfolio, which includes a minority stake in basketball San Antonio Spursalso injected into the Barcelona Troubled balance sheet with fresh capital.

The promoter of Sixth Street’s partnership with Barcelona?Spanish brokerage key capitalearlier Advised on a €360 million transaction Between the San Francisco-based company, Legendary HospitalityAnd – wait – real Madrid for refurbished Santiago Bernabeu Stadium and event series.

Madrid and Barcelona are cementing an awkward alliance against other commercial interests in Spanish football.They were founding members of the European Premier League, which stalled last year, and blocked an investment in December CVC Enter Spain La Liga, the principle is that the two most successful clubs can negotiate a financially better deal. The private equity group eventually scaled back its deals with other clubs in the league after major rivals refused to join.

Comparing Sixth Street’s investment in Barcelona to CVC’s is “a no-brainer”, as a person briefed on the deal told the Scoreboard, adding that the terms of the deal bring the cash-strapped club a 2.68 billion euros in capital gains. Mass player transfers have created mounting short-term debt, with Barcelona eager to add new capital before the end of the financial year on June 30.

Following a vote at this month’s general meeting, Barcelona was allowed to sell an additional 15% of its long-term media rights in the short term, as well as up to 49% of its merchandise and sponsorship units. Whether those shares will be sold, and to whom, remains to be seen.

Currently, Barcelona and Madrid are further consolidating their common economic interests. If extracting the largest institutional investment is a priority, then the enemy of your enemy is your friend.

Why golf is a problem for Saudi money

Rory McIlroy and the European Tour: LIV Golf’s opponents © AFP via Getty Images

As Saudi Arabia’s cash continues to pour into sports, why is its arrival in golf so controversial?

Have More Journalists murdered compared to Saudi Arabia’s poor record on human rights Jamal Khashoggi and allegations of “sports baptism”.

European Tour CEO Keith Paley Explains why he is so opposed to the arrival of LIV Golf.

Funded by Saudi Arabia’s $620 billion sovereign wealth fund, LIV threatens golf’s established order.The PGA Tour has dominated the sport for decades, and its history is intertwined with legends such as Arnie “King” Palmer, Jack Nicklaus and tiger woods.

Under Paley’s leadership, the European Tour has developed strong ties with the US Tour. The circuit showed solidarity this week as more members headed to LIV.

For weeks, however, there were rumors that Paley was actually considering whether to join the Saudi-backed bloc.in with PGA Tour Commissioner Jay MonaghanPaley shot down the gossip.

his objection The root of the partnership with LIV, he said, was Saudi Arabia’s decision to “play outside the ecosystem.”in other sports such as Formula one racing and The Premier League Football, Saudi invests ‘within the ecosystem’.

Paley does not appear to be against Saudi cash per se.he is on the board Ladies European Tourhold competitions in the kingdom and receive sponsorship revenue from the national oil company Aramco. In addition, the Saudi international also participated in the 2019-21 season on the European Tour.

“I’ve always maintained that if in fact they were interested in playing within the ecosystem and not launching a tour of competitors that I thought would be detrimental to the game as a whole, then I personally . . . would be open , they know, there can be conversations,” Paley said.

As Monahan pointed out, no overruns Life. So this week, he and Paley faced the press to talk about their latest move: The PGA Tour will take its stake in the European Tour media production company on top of the existing 15% stake it acquired for $85 million increased to 40%. 2020.

Pelley and Monahan also unveiled a 13-year joint venture partnership, vowing to increase commercial revenue and bonuses, and to continue collaborating on events.

“It’s better for us to work together than individually,” Monahan said. “The game of golf is pulling.”

emphasize

Emma Raducanu: Winning Sponsor © AP

  • Tennis is the perfect target for match makers. The underpayment of players, the rigours of the tour, and the countless points, games, games and games all explain this phenomenon.This is the story of a reformed matchmaker whose Fall and Redemptionas part of the FT Globetrotters series Articles about the sport.

  • Emma Raducanu did a quit early From Wimbledon, for sponsorship US Open winner. British Airways, HSBC, Porsche and Vodafone is one of her biggest sponsors.

  • Amazon sold out 17 rights Champions League The competition takes place in the UK as it gradually expands its footprint in live sports. However, the value of traditional TV rights has fallen sharply.

  • The FT data visualization team has detailed the performance of England’s men’s Test cricket team changed their fate.

  • Greater China is one of them nikemost profitable market.However, the FT’s Lex column says the world’s largest sportswear manufacturer is pain The problem of a stronger dollar and higher freight rates has been exacerbated by the country’s lockdown.

  • In the great transformation of American college sports, University of Southern California and UCLA Have agree to join This Big Ten Conference Starting in 2024, the move signals that the more than $14 billion industry is headed for a conference duopoly. Los Angeles’ two mighty colleges could shake up broadcasting rights, especially college football, and destroy their current conference, PAC-12.

final whistle

Nick Kyrigos: Talking about practice

Australian tennis antihero Nick Kirrigos is a self-described boston celtics ‘Superfan’ who rarely misses games this year National Basketball Association runner up.join in tennis channel Following his second-round win at the All England Club at Wimbledon on Thursday, Kyrigos gave potential opponents a hint at the level of performance they could expect from him on a Celtic game day.check it out here.

The scoreboard was written by Samuel Agini, Josh Noble and Arash Massoudi in London, Sara Germano, James Fontanella-Khan and Anna Nicolaou in New York, as well as by the production team of the Due Diligence Newsletter, FT Global Correspondent and Data Network contributed to the visualization team

due diligence — Headlines from the corporate finance world.register here

unhedged —Robert Armstrong dissects the most important market trends and discusses how the best minds on Wall Street are responding to them.register here



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