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Ligue 1: what is CVC, the organization which finances part of the championship and thanks to which the TFC will receive several million euros?

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CVC recently became a new minority shareholder in French football, against 1.5 billion euros. After the health crisis, this financial windfall is more than welcome for the clubs, which however will not use this money in the same way.

Improve infrastructure or buy big names on the transfer market? The precious windfall from the CVC investment fund, which has become a minority shareholder in French football for 1.5 billion euros, is not used in the same way by all Ligue 1 clubs.

After three seasons marked by crises, that of Covid-19 and that of TV rights, in sharp decline since the failure of the former broadcaster Mediapro, the French Championship opens an era of reconstruction, at the dawn of the season. 2022-23 which starts Friday August 5th.

What is HVAC?

CVC Capital Partners is an investment fund headquartered in Luxembourg. The organization, which has existed for more than 40 years (1981), is also present in the United States and Asia. It is one of the ten largest investment funds in the world with approximately $165 billion in committed funds.

In the past, and even recently, CVC has multiplied its investments in the world of sport: in Formula 1 (via the great financier Bernie Ecclestone), by holding more than 60% of the capital between 2006 and 2017; in rugby by investing in the commercial company of the 6 Nations Tournament; but also in football in Europe (Spanish and Italian championships) and in Asia (Indian championship).

How high does this investment fund finance French football and how much will the TFC receive?

Definitively recorded on Tuesday July 26 at the General Assembly, the creation of the commercial subsidiary of the Professional Football League (LFP), of which the fund based in Luxembourg holds 13%, is accompanied by welcome payments for the clubs.

In a few days, the 17 clubs already present in the elite in 2021-22 will see a tidy sum of 16.5 million euros appear on their accounts, against 8.25 million euros for the three promoted, including the TFC.

Other payments will be spread out over the next two years, to reach a total amount negotiated on notoriety criteria (200 million euros for Paris SG, 90 for Marseille and Lyon, 80 for Lille, Monaco, Rennes and Nice and 33 million for the others).

Be careful though: this fresh money is only an advance from CVC which intends to be remunerated on future income. And if the first payment, supposed to give a little air to the stables weakened by the crisis, is granted without conditions, the following ones will have to respond to a well-calibrated roadmap.

Indeed, “the project is a development plan and not a rescue plan for professional football”, repeated in recent weeks the president of the LFP Vincent Labrune in general assembly.

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Ligue 1: the LFP endorses CVC’s commitment to its commercial subsidiary, we explain what changes for French football

“It’s not money to make up the deficits, increase the payroll and make transfers. This financial return allows us to have a little more serenity about the future, but that does not mean that we are rich and that does not mean that we will be able to recruit players at 4-5 million”, explained in May the sports director of Brest Grégory Lorenzi to the local press.

How will the clubs use this money?

Attentive to the use of these funds, the LFP will therefore enforce a particular signposting through a granting commission. Infrastructure, training, security, digital… The criteria are not lacking.

In Clermont, for example, in addition to major works already planned for the stadium, five million euros have been allocated to improving the training center, with the renovation of one and a half pitches, the creation of a mound athletics and the construction of 1,100 m2 of buildings for professionals and the medical service.

In Rennes, which will receive up to 80 million euros from CVC, the contribution makes it possible to envisage a more serene transfer window, but also to finance without batting an eyelid the expansion and overhaul of the Piverdière training center for an estimated cost of between 35 and 40 million euros.

Olympique de Marseille has three main axes for the direction of these welcome funds: the structure of the stadium and security, the training center and digital. “The visitor parking lot will be completely revisited”, with “part of the work undertaken during the summer, and the other completed during the World Cup, in November-December”, an OM official told AFP. “These are measures that we could have taken before but that we could not finance”. Ditto on the side of the Marseille training center, which costs around 10 million euros per year, for fairly limited returns on investment in recent years in terms of sales of players trained at the club.

“If there was no money from CVC, we would probably close half of the classes in the training center, we would reduce the number of children welcomed”, recognizes the manager, also attached to the development of the digital unit. , which “is really part of the CVC experience, as it’s a showcase for Ligue 1”.

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