Interesting alternative. Cloudflare (market cap $58B) buys La liga (market value $5 billion), drops suit.

Real Madrid alone is more than $5B ? Maybe you mean to say league association is worth 5B ? That seems too high the association does not have lot of margins they pass through most of their revenue to the clubs .

The last domestic TV deal they signed recently was worth $6B for 5 seasons or so, which is what you are proposing they buy.

In enterprise value terms that $1B/year growing 6 %YoY is worth a lot more than $5B.

In contrast Cloudflare has a $2.5B revenue albeit growing much faster but also has much smaller earnings or free cash flow, I.e. money they are not spending to make their current revenue.

▲

hunterpayne 2 days ago | parent [-]

Here are RMs financials...https://www.realmadrid.com/en-US/news/club/latest-news/notic...

They make about $25m a year in profit. Cloudflair actually looses a small amount of money on 2.5x the revenue. However, Cloudflairs market cap is about 100x that of RM's and that's because they have a growing business, in a growing industry and can easily become profitable when needed. That's probably not possible for RM and their very pricey lineup of players.

	▲	manquer 2 days ago \| parent [-]
		It is not the comparison to make, which is why I focused on the league’s tv revenue which is what is relevant , i only bought up Madrid’s valuation to ask where is Laliga ‘s $5B coming from. Real Madrid owns the Bernabeu a valuable piece of real estate in the heart of Madrid and many other assets the Real Madrid brand is very monetizable . Sports team have been consistently growing businesses in every major sport in both Europe and US. Comparing a sports team and SaaS company is hardly going to be apples to apples with different asset , revenue, brand and monopoly and strategic profiles. —— The risk to the league due to piracy is the value of the television deal. The buyer paying $1B/yr (DAZN) is the reason for this enforcement. If Cloudflare wants to buy this problem away that is what they need — The $1B deal growing 5-6% YoY and get into the streaming business . Prime alone is expected to spend $4B on live sports rights this year. It is very expensive space with everyone from Apple to Google and Netflix to sovereign funds going deeper every year . The streaming revenues otherwise aren’t expected to be massively grow so this is the content play that is least risk - compared to investing in say 4-5 blockbuster movies or tv series this is far more predictable and consistent revenue stream.

▲

msully4321 2 days ago | parent | prev | next [-]

I'm not sure where that number comes from but I don't think it's right, and I don't think that's how La Liga is structured anyway. It's governed by an association of all of the teams in the top two flights of spanish football.

▲

ordersofmag 2 days ago | parent [-]

Right. The number is the result of Claude adding up the public information about the aggregate value of all those clubs plus the association. So it would mean buying all the clubs; or at least enough to have a controlling interest in the association. Clearly there are big challenges to that (e.g. clubs not being for sale for one). But I thought it was an interesting thought experiment. Of course if you're just trying to play the money = power card then it'd probably be cheaper to purchase the influence of some government officials.

	▲	duckmysick a day ago \| parent [-]
		Did Claude point out that under this proposal the Spanish clubs would be bared from entering European competitions? Since the clubs under the same ownership (more than 30%) can't enter the same UEFA club competitions.

▲

lokar 2 days ago | parent | prev | next [-]

Set an example. Buy them, fire everyone, shut it down and liquidate the property.

▲

outside2344 2 days ago | parent | prev [-]

Less headaches, free futbol matches!