LaLiga, Spain’s top football competition, and Galaxy Racer (GXR), the Dubai-based multinational transmedia company, have signed a letter of intent paving the way for the formation of a 15-member joint venture (JV) years with the aim of transforming the sports league’s brand presence in the Middle East and North Africa (MENA) region and the Indian subcontinent.
GXR, founded in 2019 by Group CEO Paul Roy, is the esports, gaming and lifestyle organization with presence in the MENA region, North America, Southeast Asia, South Asia and in Europe.
The joint venture positions GXR as the local partner of LaLiga in the MENA market and the Indian subcontinent, establishing a historic first for the world of sports rights in the territories, which is expected to generate more than €3 billion in revenue.
Following the signing of the letter of intent, the parties entered into a period of exclusivity to conclude the details of the contract and the establishment of the JV. As agreed in the letter of intent, LaLiga and GXR will each hold a 50% stake in the new JV.
The JV will provide LaLiga with new avenues and opportunities to grow the brand’s presence in a key target region which is one of the youngest on the planet with over 1.3 billion people under the age of 30.
In addition, the joint venture will act as the media rights agency for broadcast and media rights for the MENA region and the Indian subcontinent.
The deal provides LaLiga with an innovative route to share its intellectual property (IP) through a local partner that already offers considerable market reach – GXR has over 500 million subscribers worldwide – and a platform -form of growth that leverages expertise in six key verticals: licensing, content creation, esports, influencer/talent management, merchandising and music.
Paul Roy, CEO and Founder of Galaxy Racer said, “The LaLiga brand is powerful, but its potential remains untapped among Millennials and GenZers in the MENA region and the Indian subcontinent.
“Our opportunity is to connect with younger audiences in a way that resonates with them. Galaxy Racer has a market reach that will help unlock this potential and make LaLiga an ambitious brand for target audiences in the region. .
Oscar Mayo, La Liga executive director added, “As the market is about to enter a new era of growth, it is the right time to take our activities in the region to the next level and attract the next generation of young sports fans to our competition.
“This historic partnership is set to increase the popularity of La Liga and football in the MENA region and the Indian subcontinent. With Galaxy Racer’s vast experience in the region as one of the biggest transmedia powerhouses in the world, we believe they are the perfect partner to help us reach new audiences and unlock the true potential of LaLiga in the region.
“Partnering with Galaxy Racer is a major step in our international expansion strategy,” added Maite Ventura, LaLiga’s Managing Director for the Middle East and North Africa“This agreement not only ensures a bright future for football in the MENA region and the Indian subcontinent, but also for La Liga and our clubs.
“Success for us is seeing more young people playing and enjoying the game, we want to tap into the hearts and minds of Millennials and GenZ. With Galaxy Racer’s expertise in the market, we we will be able to truly retain fans and position LaLiga as a leading football and lifestyle brand,” she added.
The deal will help LaLiga reach younger audiences in a meaningful way, through content creation and a cross-focus on gaming and esports, as well as new consumer products – from apparel to collection – and a wide range of activations ushering in a new way of thinking for the world of football and sport.
One of the highlights of the agreement is the creation of a production studio for the JV. The studio will leverage Galaxy Racer’s extensive experience in licensing, product development and content generation, production and broadcast in a region considered one of the fastest growing territories in sports. thanks to a significant investment pipeline in areas such as golf, boxing, F1 and horse racing in recent years, as well as the FIFA World Cup Qatar 2022, which is due to take place later this year.
Based in the United Arab Emirates, the JV will comprise a team of approximately 20 people dedicated to developing the brand and securing new business opportunities, with a five-person Board of Directors, including Chief Executive Officer (CEO) Maite Ventura . Luis Cardenas, Commercial Director of LaLiga MENA, will serve as Chief Commercial Officer (CCO).
The JV will work in coordination with league delegates based in Morocco, Egypt, Qatar, Saudi Arabia, Turkey, Israel, India and the United Arab Emirates, a key element for regional growth.
Several LaLiga and Galaxy Racer collaborations are already in the works, including a documentary series, tournaments, merchandise, physical events and activations.
GXR will also host designer activities to showcase the LaLiga brand throughout the year and launch a roster of LaLiga-focused designers. As current LaLiga Football Ambassadors, the selected creators will represent LaLiga exclusively, traveling the world to promote themselves and LaLiga to fans around the world.