Spanish soccer club FC Barcelona has financial troubles. But it hopes to fix that with plans to list its content creation unit Barca Media on Nasdaq.
The deal will be done via a SPAC merger that would value that business at $1 billion, according to Fortune.com
SPAC, an acronym for special purpose acquisition company, is partnering with Swiss private equity fund Mountain Partners. Existing Barca Media shareholders will hold a 80% stake in the SPAC company.
The club’s goal is to get funding to create more sources of income, and Barca Media could become an “important source of revenue in the coming years,” FC Barcelona said in a statement.
“The business incorporates substantially all of the digital content the club has produced over the past 20 years, targeting fans of all ages around the globe,” it said in a press release Friday.
A spokesperson from the club declined to comment.
In 2021, FC Barcelona recorded a loss of €481 million ($527 million), and its debt continued to grow. One consequence of those difficulties was that the club decided not to renew the contract of star player Lionel Messi in August 2021 after 17 seasons. FC Barcelona said it couldn’t afford one of the sport’s highest earners and greatest players.
The club is hoping that a $1.6 billion stadium renovation, complete with adjacent shopping and entertainment options, will yield enough new revenue to restore the club to its former status as a financial juggernaut. The new stadium is expected to generate $219 million in additional revenue for the club through events, tickets, and more, Reuters reported.
