Tense calm as Sevilla sale awaits notary

Sergio Ramos, Five Eleven Capital and Sevilla FC’s main shareholders are approaching a reported May 29 notary appointment that would formalize the sale of the club, according to MARCA. The Spanish sports daily said on May 20 that the atmosphere around the process was one of “calma tensa” — tense calm — as the parties worked before the expiration of a Letter of Intent on May 31. The proposed transaction would transfer roughly 60% of Sevilla’s share capital from the club’s main owning families to the buyer group led by Ramos and Five Eleven Capital, MARCA reported. The deal still requires formal documentation, financing guarantees and regulatory approvals before any ownership change is complete. ### Why does May 29 matter in this sale? May 29 matters because MARCA reported that the parties’ notary appointment is set for that Friday, two days before the LOI expires on May 31. The paper said the LOI signed in January gave Ramos and his group an exclusivity window to negotiate the purchase of Sevilla. Because May 31 falls on a Sunday, May 29 would be the last working day to sign before that deadline, according to the report. (marca.com) January 25 is when ABC reported that Ramos had signed the LOI with the shareholders represented on Sevilla’s board. ABC said the document made Ramos’s group the lead bidder after earlier talks with two other investor groups had broken down. ### Who is buying Sevilla, and from whom? Sergio Ramos is the public face of the buying group, and Martín Ink, identified by MARCA as chief executive of Five Eleven Capital, has taken part in the negotiations. (marca.com) MARCA reported on May 12 that Ramos, his brother René Ramos, Ink and Sevilla’s main shareholders reached an agreement in principle after marathon meetings in Seville. (abc.es) The sellers are the club’s principal shareholder families — Carrión, Castro, Alés and Guijarro — whose stake amounts to about 60% of Sevilla’s shares, MARCA reported. The paper said that percentage could rise to about 80% if the shares of former president José María del Nido Benavente are included. ### What price and payment terms have been reported? (marca.com) MARCA reported on May 12 that the operation was priced at 450 million euros minus net debt, which the club put at 85 million euros. In a May 20 follow-up, the paper described the deal as 450 million euros including debt. AS said the price agreed was just over 400 million euros including debt. The differing figures have been reported by Spanish outlets, but all describe a transaction in the low-to-mid hundreds of millions of euros. (marca.com) The payment schedule reported by MARCA stretches over two years. The buyer group would make an initial payment equal to 60% of the total, followed by 30% in the first year and the remaining 10% in the second year, the newspaper said. MARCA added that the buyers do not need to pay the full amount on signing day, but they do need to prove they can meet that schedule. (marca.com) ### What is holding up the signing? Financing guarantees are the immediate issue cited by Spanish media. MARCA reported that more than 70% of the shares included in the sale — more than 73,000 shares — are free of encumbrances, while creditors have agreed to release the remainder at signing. The newspaper said that step depends on the buyers presenting guarantees showing they have the financial capacity to complete the purchase. (marca.com) MARCA also reported that the full guarantee for the money needed to close the agreement had not yet been presented. The paper said Ramos and Five Eleven Capital had arrived backed by several investors, with the main source of capital previously linked to Mexico, but that relationship may have broken down and alternatives were being sought. MARCA attributed those details to information circulating around the deal. (marca.com) ### What approvals would still be needed after a notary signing? The Consejo Superior de Deportes, or CSD, and LaLiga would still need to clear the ownership change after the notary step, according to MARCA and AS. MARCA reported on May 12 that the sale still had to pass “trámites burocráticos,” including permission for the change of ownership from the CSD and approval from LaLiga. AS reported that Spanish rules require prior CSD authorization when an investor acquires 25% or more of the share capital of a sports public limited company. (marca.com) May 31 is the next fixed deadline in the process. If the parties reach the reported May 29 notary appointment with financing guarantees in place, the transaction would then move to the CSD and LaLiga review stage for Ramos, Five Eleven Capital and Sevilla’s selling shareholders. (marca.com) (marca.com)