Spanish soccer giants Barcelona plan to float their digital unit on the Nasdaq stock exchange by creating a special purpose acquisition company (SPAC), according to Reuters.
The news agency, citing a report in Expansion, said the LaLiga champions are in discussions with Swiss private equity fund Mountain Partners over a listing that would value Barca Media at €1 billion ($1.1 billion).
Barca Media controls the Catalan club’s digital media assets, including video content, social media and esports.
Under the plans, Barcelona would retain 80 per cent of the company, while the SPAC would own the remaining fifth. Should the plan go ahead, the initial public offering (IPO) would take place before the end of the year.
SPACs are set up with the explicit goal of merging with another company within a certain timeframe. In normal circumstances, investors do not influence the specific takeover target, however in this instance the SPAC has a clearly defined acquisition in mind.
SportsPro says…
No stone has been left unturned in Barcelona’s quest to field a more competitive soccer team, redevelop their Camp Nou stadium and return to a more sound financial footing – all while satisfying LaLiga’s financial rules.
To balance the books, the club has exercised a series of euphemistically titled ‘economic levers’, many of which have involved its media and digital activities. Barcelona’s huge popularity at home and abroad means these assets have significant value and growth potential as sport continues its digital transformation.
Barcelona have already sold 25 per cent of their domestic broadcast income for the next 25 years, and have parted with half of their Barca Studios production arm through separate deals with blockchain specialist Socios and production company Orpheus Media.
Some have been critical of Barcelona for selling the family silver to correct previous mistakes. However, this reported deal would at least give the club a greater say – and financial interest – in how its digital assets are maximised in the future. A listing in the US would also provide access to American investors and technological expertise.
This helps to explain why a SPAC, a concept that was immensely popular in the sports industry back in 2021 but has lost favour since, is being employed for this particular transaction.
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