Sale of 10% of TV rights to Sixth Street and settlement of 2021/22 financial year approved by absolute majority

The second item on the Assembly agenda saw an absolute majority of delegate members ratify the agreement to sell 10% of the Club's LaLiga men's football audio-visual rights to the United States-based fund, Sixth Street Partner, approving essential support for the settlement of the 2021/22 financial year. The result was a profit of 98 million euro, with an income of 1.017 billion euro and 856 million euro in expenditure. The first round of voting, corresponding to the first 'lever', resulted in 91.34% of votes (591 votes in favour, 38 against, and 18 left blank), while the second round of voting on the final balance sheet resulted in 89% in favour, (548 votes for yes, 43 against, and 24 left blank).

Delegate members saw vice president of the Economic area, Eduard Romeu, outline the details of the operation to sell 10% of the TV rights from the Liga Nacional de Fútbol Profesional Masculina for 25 years, with an option for the Club to buy back the shares and therefore, the TV rights. This operation generated 267 million euro in income, 207.5 million of which the Club receives in the form of capital from Sixth Street.

Sixth Street is a leading investment firm in the sports and leisure sector, managing over sixty billion dollars in shares across different sectors. They use flexible capital over the long-term and analysis-based skills to develop investment areas and to offer solutions to companies throughout all stages of their growth.

The structure of the operation with Sixth Street

The agreement with Sixth Street was negotiated directly rather than collectively with investors. This improved the operation, optimising its structure, reducing both how long it took and the cost. The operation was structured through a company called Locksley, in which Sixth Street are major shareholders (51%), with the Club holding the remaining shares (49%). The Club invested €60M of capital in Locksey with Sixth Street investing €207.5M.

The price of the operation is set at 267 million. Should the annual growth of the income from the first 6 years surpass 4.5%, the variable price is €9.5M. With respect to the 25 year period, this can be shortened to 20 or extended to 30 years in function of the application of an objective formula based on the annual growth of TV right income.

Payment was structured as €190M on agreement, a further €29.5M was paid on 15-07-22, with the remaining €47.5M to be paid on 15-07-23.

Romeu: 'The Club has value and inspires confidence'

During his presentation, Eduard Romeu highlighted the fact that confidence among sponsors and about the general improvements to the Club has returned, whether from a financial aspect or in terms of international prestige and consideration.

"The Club has shown it is able to access international markets", indicated Romeu. “The Club has a name, has value, and prestige, and the Club inspires confidence. This all enabled a less expensive TV rights operation compared to a combined operation with all the teams from LaLiga”.

During his speech, Barça's vice president of the Economic area also stated that “one of the objectives set by the board of directors was to find business partners that would help us value our assets, and the delegate members' approval during the Assembly means we have been able to activate these operations, meaning we could resolve the current financial situation and buy time”.

Subsequently, FC Barcelona Strategic Economic Commission President, ​​Jaume Guardiola - who will be replaced by Joan B. Casas after being elected Cercle d'Economia president - presented the commission's report on the accounts for the 2021/22 season, supporting the 'lever' for the sale of 10% of the TV rights, which enabled the financial year to close with a profit of 98 million, also stating that "the income is essential for ensuring the Club's viability". Guardiola highlighted the Board of Directors' work on having found these additional sources of income, but also reminded of the need to bring stability back to the assets and "obtain positive day-to-day management".