The LFP and a company owned and financed by funds managed by the investment company CVC Capital Partners (“CVC”) announce the signing of an investment commitment agreement in connection with the creation of the LFP’s commercial subsidiary and CVC’s minority investment in its capital.
Following the competitive investor search process conducted by the LFP since autumn 2021 and its entry into exclusive negotiations with CVC on 18 March 2022, the LFP General Meeting held today unanimously approved the creation of the commercial subsidiary and the firm investment commitment by CVC for a total amount of €1.5 billion in its capital, intended to support the development of the entire French football ecosystem. Most of this financial contribution will be paid to professional football clubs, another part will be intended for amateur football, the reimbursement of the PGE contracted by the LFP in 2020, the constitution of a reserve fund and the seeding of the commercial subsidiary in order to give it the means to achieve its ambitions.
In return for its investment in the commercial subsidiary, CVC will hold a 13.0% stake in its capital, valuing the entire capital of the commercial subsidiary at €11.5 billion.
This new partnership is a continuation of the structural reforms undertaken by the LFP in order to transform and accelerate the development of French professional football. It reinforces the LFP’s ambition to reposition France on the world podium of football leagues in the medium term, both in terms of sport and economy. As a pioneer in sports investment, CVC will put its expertise, experience and relationships at the service of the LFP’s commercial subsidiary and support its business development ambitions.
The LFP would like to thank all the stakeholders who made it possible to implement this project, first and foremost the professional clubs of Ligue 1 and Ligue 2 who unanimously approved the project, as well as the French State and the French Football Federation. Their unwavering support for the LFP project show the unity of French football to engage in this ambitious development project.
The completion of the transaction is expected by the end of July 2022, after consultation with the LFP’s employee representative bodies and the fulfilment of the usual conditions precedent, including in particular the obtaining of authorisations from the competition authorities.
Vincent Labrune, President, LFP, said: “This project is a major step in the development of French football and a historic step forward for sport in France. We are delighted with this alliance with CVC, a partner that perfectly fits our project for Ligue 1 and for French professional football. Beyond having chosen the candidate with the best financial offer, we needed a partner who will help us grow our future projects and understands our DNA. CVC’s unique expertise in media and sport (F1, Moto GP, Six Nations, Volleyball, Football, etc.) was also a structuring point for us. In terms of governance and style, CVC will support the LFP, the commercial company and its leaders, who will benefit from its global network, to achieve the ambitious objectives we have set ourselves.
“We were also particularly sensitive to CVC’s ‘French Touch’. It is a European player with deeply French roots, able to offer a tailor-made approach adapted to our national challenges but also in all territories. For all these reasons, I am absolutely convinced that CVC will be a reliable, expert partner and up to our challenges in the months and years to come.
“Finally, I would like to thank personally and on behalf of French professional football the President of the Republic and his government for having made this project possible at the legislative level. I also do not forget the French Football Federation and its President, Noël Le Graët, for its constant support. Finally, and above all, I salute all the LFP teams for their unwavering commitment over the past 16 months to this project, and without which it would not have been possible.”
