Real Betis Balompié is in talks with Sixth Street Partners-backed Legends Hospitality to run concessions for the Spanish football club’s stadium, according to people with knowledge of the matter.
(Bloomberg) — Real Betis Balompié is in talks with Sixth Street Partners-backed Legends Hospitality to run concessions for the Spanish football club’s stadium, according to people with knowledge of the matter.
A deal with the US sports entertainment and events management company would also include some other live operations for the club, the people said, asking not to be identified as the negotiations aren’t public yet. The talks are in the early stages and could end without an agreement, said one of the people.
An agreement with Legends could help Betis, which reported a €38.3 million ($42 million) loss at the end of last season, improve the health of its balance sheet. LaLiga, the Spanish top-flight, applies strict financial fair play rules that teams have to comply with in order to sign and register new players.
A spokesperson for Legends declined to comment, while a representative for Real Betis said the club signed a commercial agreement with Legends in January to seek new sponsorships however declined to comment further.
The Seville-based club is planning to revamp its stadium, known as the Estadio Benito Villamarín, and included the project — for which it has already opened an international architecture tender — in its latest strategic plan. The club estimates a budget of about €70 million will be needed for the refurbishment, which is expected to start in June next year.
A deal with Betis would further consolidate the presence of Legends, which is a portfolio company of the US private investment fund Sixth Street Partners, in Spain’s top sport. Last year, the firm bought a 30% stake in the operations of local football powerhouse Real Madrid CF’s stadium for about €360 million, as part of a 20-year agreement also involving its live events arm. Under its terms, the US investor will also receive revenue from all activities taking place at the venue — which is also undergoing an €800 million renovation — excluding season-ticket sales.
The investment firm also bought a 25% stake in FC Barcelona’s televised league match rights for about $534 million. The storied club has been selling assets in an effort to shore up its beleaguered finances.
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