After the validation by the Senate in January of the principle of creating a commercial company, a subsidiary of the Professional Football League (LFP), intended to make TV rights more profitable and increase the income of French football, Le collège de Ligue 1, meeting this Thursday agreed on the criteria for the distribution of income generated by the entry into the capital of CVC Capital Partners in the commercial subsidiary of the LFP. The idea of this commercial company, backed by an investment fund for which French football has already begun to select potential shareholders, is to bring in new money and better sell TV rights abroad.
The share of this company that can be transferred to an investor has been set at 15%. This Thursday, the clubs unanimously agreed on the distribution of the contribution of funds following the acquisition of a 13.04% stake by CVC Capital Partners in the newly created structure (1.5 billion euros). euros) and also on the share of recurring revenues generated for the next ten seasons, both in terms of domestic audiovisual and commercial rights, international audiovisual rights and digital rights.
A distribution that favors “big clubs”, mainly PSG
According to L’Équipe, it was decided to keep before the distribution €100 million for a reserve fund, another €100 million for the costs and operation of the future structure and €170 million to immediately repay the PGE (loan guaranteed by the State) contracted by the LFP. There was therefore 1.130 billion left to share. Three groups of clubs have been defined. PSG, alone in group 1 then OM, OL, Nice, Lille, Rennes and Monaco in group 2 and all the others in group 3. PSG will receive 200 M€ (17% of the total) , group 2 will receive 80 M€ for each with the exception of OM and OL who will have 90 M€ due to their higher weight. Finally, Group 3 clubs will each earn €33m. PSG initially claimed 30% of the total.
It was also decided that from 2024, television rights would be distributed differently. The system remains the same up to 700 million in annual revenue (the LFP now receives 663 million euros per year). But beyond that, we remove the fixed part and we only keep the criterion of classification and notoriety, which benefits the “big” clubs. Beyond the annual billion (if the next call for tenders is successful), we return to the initial system. Finally, for international rights (which now bring in 73 million euros a year, where the margin for improvement is the greatest), the distribution will be made in proportion to the UEFA points of each club. This will be an incentive to try to perform in the European Cup, even in the Europa League or in the Europa League Conference.