La Liga ratified its agreement with private equity firm CVC Capital Partners, but several top teams are still fighting the deal.

The private equity firm will spend $2.3 billion in exchange for an 8.2% stake in a new company that will hold the league’s media rights. CVC’s arrangement lasts 50 years, but the firm said it is likely to sell the rights within 10 years.

The pact was approved by 37 of 42 teams, easily reaching the 32 votes the league needed.

Real Madrid, Barcelona, Athletic Bilbao, and Ibiza opposed the deal, and said they will take legal action to stop it. Clubs were given the choice to opt out of the deal.

• Women’s soccer teams were written out of the deal to avoid further complications.
• League officials maintain that women’s teams will have access to around $5.1 million through the deal. 

French Leagues Could Be Next

CVC is also one of a handful of private equity firms bidding on a similar arrangement from the Ligue de Football Professionnel, which oversees Ligue 1 and Ligue 2. 

The company is taking bids for a stake of up to 20%, worth around $1.7 billion, in a new company that will hold the leagues’ media rights. Bain Capital, Advent, Apollo, Bridgepoint, EQT, KKR, and Silver Lake are also reportedly preparing offers. 

The deal could provide additional funds to popular clubs like Paris Saint-Germain and Olympique Marseille.

The National Football League is issuing $275 million in debt and creating a five-year facility under the league-wide credit facility. The new credit facility, issued through Football Funding II, will hold $3.178 billion in debt, rolling the two existing facilities into one.

Issued this month, the money involves term notes, which typically offer a fixed interest rate over the life of the loan. The notes will mature in 2028, 2033, and 2041. 

‘A’ Rating

The debt was given an ‘A’ rating by Fitch Ratings, which cited various reasons for the league’s “highly regarded economic model.”

• “Sizable multi-year national media contracts”: The league signed agreements with NBC, CBS, Fox, ESPN, and Amazon for roughly $110 billion collectively over 11 years.
• “Significant and equitable revenue sharing among member clubs”: In 2019, NFL clubs reportedly shared $8.8 billion of the total $14.5 billion in revenue.
• “A collective bargaining agreement with its players union”: The deal ensures NFL labor peace through at least 2030 and, starting this year, gives players at least 48% of all league revenue.

Last year, teams agreed to raise debt limits by $150 million to $500 million for each franchise due to pandemic-related financial struggles — the league’s revenue fell by $4 billion from 2019 to 2020.

Academy Sports raised its full-year revenue guidance following the company’s third-quarter earnings report.

The Texas-based sporting and outdoor goods retailer posted $1.59 billion in net sales in Q3 2021, an 18.1% uptick year-over-year and its ninth consecutive quarterly profit increase.

During the quarter, Academy Sports benefited from growth across all its divisions and strategic initiatives to improve operations, customer service, merchandise allocation, and its supply chain.

The company expects full-year revenue to range between $6.6 billion and $6.7 billion, up from a previous target of between $6.4 billion and $6.6 billion.

Continued Growth

Academy Sports has made a number of moves to expand its footprint in the $126 billion sporting goods market.

• It raised $203 million during its IPO last October, valuing the retailer at $1.1 billion.
• The company agreed to sponsorship deals in July with the University of Texas and Austin FC.
• The company operates 259 stores across the U.S. and plans to open more than 800.

Private equity firm KKR & Co. sold its entire stake in Academy Sport in September in a deal valued at $852.85 million. KKR acquired 20% of the company — 18.65 million shares — in 2011 for an undisclosed amount and had been the retailer’s largest shareholder.

The New England Patriots announced a $225 million renovation on Friday to enhance the fan experience at Gillette Stadium.

Privately funded by the Kraft family, the project is expected to be completed by the start of the 2023 NFL season and will be the stadium’s most significant facelift since it opened in 2002.

“We are thrilled to break ground,” said Kraft Sports + Entertainment CMO Jen Ferron. “This project readies Gillette Stadium for the next 20 years.”

• The largest outdoor HD stadium video board in the U.S. will be installed.
• The north end zone will have a new lighthouse with an observation deck.
• The plaza leading to the stadium will be modernized with a new fan-activation area.
• A 75,000-square-foot glass-enclosed hospitality space will also be constructed.

Family Business

The Kraft family has showcased a willingness to invest in the Patriots and its assets. In March, the Patriots spent $163 million in guaranteed money on free agents — an NFL record.

Earlier this year, Gillette Stadium underwent several renovations, including a new video board installed in the south end zone and enhanced concessions and merchandise operations.

Gillette Stadium isn’t the only NFL venue renovating. Caesars Superdome — home of the New Orleans Saints — is making progress on a $450 million multi-phase renovation project that is expected to be completed in 2025.