Why did the Liga MX investment collapse?

The $1.25 billion investment deal in Liga MX, proposed by Apollo Global Management and involving the NFL, collapsed due to a lack of unanimous agreement among the 18 Liga MX clubs to pool their commercial rights, which was a key condition of the investment. Here’s a snapshot of the history of this deal:

Timeline

• May 2016: Apollo Global Management first expressed interest in investing in Liga MX. This was part of a broader trend where private equity firms began looking at opportunities in global sports, including soccer leagues.

• May 2022: Apollo was reported to be preparing a $1.25 billion investment proposal for Liga MX, aiming to acquire 20% of the league’s international media rights for 50 years. This move was contingent on Liga MX clubs agreeing to centralize their commercial rights, a significant shift from the league’s traditional model where clubs manage their own rights.

• December 2024: The deal seemed closer to fruition with news that Liga MX had reached a formal agreement with Apollo and the NFL, but it was still pending a vote from all 18 teams to agree on pooling some of the league’s commercial rights.

• December 13, 2024: The deal collapsed when Liga MX commissioner Juan Carlos Rodríguez resigned after the clubs failed to vote on the investment. Rodríguez had threatened resignation if the deal wasn’t accepted, highlighting internal disagreements, particularly around centralizing commercial rights like media, sponsorships, and ticketing.

Apollo Global Management

Apollo is one of the world’s largest alternative investment managers, with a focus on private equity, credit, and real estate. They were looking to invest $1.25 billion in Liga MX, aiming for a 20% share of the league’s international media revenue for the next 50 years. Their strategy involved creating a new entity, “La Comercializadora,” to manage centralized commercial rights which would include media rights, sponsorships, and other revenue streams. This approach was inspired by successful models in other sports leagues around the world, where centralized rights management can lead to more lucrative deals and increased league value.

National Football League

While the specifics of NFL’s role were less clear, their involvement was part of a broader partnership aimed at enhancing Liga MX’s commercial strategy, governance, and international presence, particularly in the U.S. The NFL, known for its lucrative media deals and extensive commercial partnerships, could potentially offer expertise in structuring and negotiating these centralized rights.

The deal’s failure was largely due to the reluctance of Liga MX teams to give up their individual autonomy over commercial rights, a situation common in leagues where larger clubs have historically benefited from independent negotiations. This resistance, coupled with the sudden resignation of Rodríguez, underscored the challenges of bringing about structural changes in Liga MX’s governance and commercial operations.