Serie A clubs on Wednesday have agreed in the idea of creating a media company to be responsible in handling the league’s TV rights, serving as the first step towards a potential opening to private investment into the football league.
The decision to create the new company was unanimously approved by the 20 sides currently in Italy’s top flight during an assembly held in Milan, with the main target to boost revenues from TV rights.
Currently, Serie A generates 973 million euros (1.1 billion euros) each year from domestic broadcasters and 371 million euros from foreign broadcasters. we also have information about Angeliño returns to RB Leipzig at here, let’s check it out!
The allocation of TV rights for 2018-21 wasn’t enough for Serie A to match with the rest of their rival European leagues.
With this, The league has invited bids for a minority stake and on Wednesday the clubs voted to review two separate bids led by CVC Capital Partners and Bain Capital (BCSF.N) for a 10 percent stake in Serie A’s media businesses.
The 10 percent stake in the company, which will control the league’s broadcasting rights business for the next 10 years, is valued at up to 1.6 billion euros.
“We have decided to create a media company having a private equity firm as a partner,” Serie A president Paolo Dal Pino told in a news conference, adding that there will be meetings soon to discuss issues including the business plan.
Torino FC Chairman Urbano Cairo said that the clubs would decide within 2-3 weeks which bid should they accept.
The clubs will be voting again before any outside investors can be formally invited into the league, but the windfall would be significant for teams that have been devastated financially during the coronavirus crisis.
For any deal to go through, 14 out of the 20 clubs must vote in favour of the stake sale.