Rafa Ramos outlines the ambitious project backed by American businessmen aimed at transforming Mexican football’s history.
Investment Fund for Liga MX
The $1.3 billion Investment Fund to revitalize Mexican football is still alive and may be signed this year, despite opposition from three teams. Originally scheduled to be formalized in May 2024, the initiative faced delays due to negligence and lack of interest from some team owners. The fund had been unanimously approved in December 2023, according to an executive from one Liga MX team.
Key figures in the new structure of the Mexican Football Federation (FMF) include Sisniega, Rodríguez, and Arriola. Following its approval, the FMF collaborated with Moelis & Company, a New York-based firm with extensive financial advisory experience.
The Election Process
Moelis & Company introduced the FMF to seven international firms capable of establishing the investment fund needed to facilitate changes proposed by Juan Carlos ‘La Bomba’ Rodríguez. These firms evaluated the financial aspects and operations of Mexican football clubs, highlighting the need for improvements in broadcasting standards.
Out of the seven, five firms showed interest in the project, ultimately narrowing down to three based on expertise and strategic contributions rather than just financial backing.
Involving FIFA advisors, the FMF began meticulous preparations, creating a secure digital vault for team information while maintaining confidentiality among team owners.
Barriers to Implementation
With Apollo Global Management chosen, Rodríguez was prepared to sign the investment agreement in May 2024, distributing between $60 and $70 million to each club. However, a serious misstep occurred when he informed the indifferent team owners about the commitments required in exchange for the funds. Many owners, once informed, expressed confusion about the votes they cast.
As a result, legal and financial scrutiny from the owners stalled the signing of agreements with Moelis & Company and Apollo Global. The realization of having an external partner in Mexican football led to mixed reactions among club executives.
Increased Expectations
The $1.3 billion was designed to be a catalyst for structural changes aimed at meeting over 200 essential criteria for enhancing football operations. The investment isn’t merely a financial influx; it serves as a mechanism to initiate these necessary reforms.
Examples of expected changes include stricter standards for club operations, improvements in broadcasting capabilities, and upgrades in stadium infrastructure, all of which are necessary for the league’s competitiveness.
Opposition from Club Owners
Currently, only three teams are opposing the initiative. One team is resistant due to its independence and lack of financial need, while the others belong to a multiproperty management concerned about confidentiality and financial transparency.
However, if the proposal is approved in the upcoming December owners’ assembly, the Investment Fund will be officially launched, paving the way for the much-anticipated reforms.
Future Developments
A significant change will involve adding a third entity to operate alongside the FMF and Liga MX, dedicated to commercializing football to improve financial stability across all leagues and national teams. This ‘alien’ entity aims to enhance operational efficiency and support overall football development.
In summary, while the proposed Investment Fund faces hurdles, its potential approval could mark the beginning of a new era for Mexican football, significantly improving its structure and competitiveness on a global scale.