Former La Liga champions, Barcelona, have decided to put on hold their plans to list their Barca Media content creation subsidiary on the Nasdaq stock exchange. The club will instead focus on 'near-time business opportunities' as a means of raising much-needed funds.
In August 2023, Barcelona had entered into an agreement with Mountain & Co I Acquisition Corp to float the division that houses the team's digital media assets such as video content, social media and esports. The special purpose acquisition company (SPAC) was valued at US$1 billion at that time. By listing this digital arm, the club aimed not only to raise funds through US capital markets but also expand its activities in the digital space and reach new audiences.
However, these plans were delayed due to missing payments worth €40 million (US$42.9 million) from investors Libero Football Finance. This German firm had agreed to buy a stake in Barca Vision - the team’s non-fungible token (NFT) platform - which was later merged with the club’s audiovisual content branch into Barca Media.
Legal disputes and financial challenges
Barcelona has since filed a lawsuit against Libero over this issue which is still unresolved. In light of these circumstances, both Barcelona and Mountain have jointly announced their decision to terminate their agreement.
The Culers will now independently concentrate on leveraging business opportunities that drive growth for their content arm while Mountain seeks alternative SPAC investment opportunities elsewhere.
This comes amidst reports from La Vanguardia suggesting that Barcelona is trying to finalize an agreement with a US-based company willing to invest €40 million (US$42.9 million). Additionally, negotiations are underway for a deal worth €20 million (US$21.4 million) with Spotify who currently serves as their main partner.
Impact of cancelled plans
The decision to cancel the floatation of Barca Media is a significant setback for Barcelona, especially considering their current spending restrictions imposed by LaLiga. In February, the league announced a reduction in their permitted annual salary limit to €204 million (US$219 million), partially due to Libero's non-payment.
This financial strain is further exacerbated by a decline in matchday income this season as the club has been playing home matches away from Camp Nou which is currently under redevelopment. Reports also indicate that Socios and Orpheus have not made payments totalling €60 million (US$64.3 million) for their shares of Barca Media.
As per reports, FC Barcelona is actively seeking new investors willing to cover the deficit caused by Libero’s non-payments. The club is also negotiating with Nike over a potential kit deal that could be worth up to €120 million (US$129 million) annually. However, with the failed plan to float Barca Media - an integral part of their attempts at balancing their books - it leaves Barcelona in an uncertain financial position as they strive to meet LaLiga’s demands and invest in strengthening their squad.
