No agreement has yet been reached on the investment. The club’s current shareholders must agree to its terms, and all necessary approvals must be obtained.
„We see an opportunity to help one of Vilnius’s most important sports organisations strengthen the foundations of its operations and make better use of its existing potential. The first specific objective is to secure the infrastructure the club needs, and a stable base at the arena within Vilnius multifunctional complex for the next 25 years. This requires investment, as neither the arena’s developer nor the local council is providing the club with a space there free of charge,“ says Deividas Jacka, Chairman of the Board at Civinity.
The investment would be allocated to the club’s operations and growth
Under the proposed model, the invested funds would go directly to the club organisation and would be allocated to its operations and growth. There is no proposal to buy out the current shareholders’ shares.
Civinity also links its potential contribution to business management expertise. This would help identify additional revenue sources, with the funds channelled into further strengthening the club. The group would aim to work alongside the existing organisation, complementing it with the expertise required for growth.
„If the deal goes through, sporting decisions will continue to be made by the club’s professionals, whilst Civinity’s contribution will focus on strengthening the infrastructure, the organisational team and the business model. We want to help the club build a solid foundation that will enable the team to pursue ambitious sporting goals,“ says Deividas Jacka.
Long-term conditions for the team and youth development
Developing sports infrastructure is part of the Civinity group’s Smart Green City strategy. The group views the club’s growth and the development of the necessary infrastructure as interlinked: a permanent base would give the organisation greater scope to plan its activities whilst the team, together with its fan base, would help to maximise the arena’s potential.
Equally important are the training conditions for the first team and the youth academy. Civinity would aim to contribute to solutions that would allow young players to develop consistently and prepare for professional basketball.
According to Deividas Jacka, Rytas has the potential to strengthen its position in European basketball and compete at the highest level. He also links the club’s significance to its contribution to nurturing Lithuanian basketball talent. It is therefore proposed that the club’s long-term sporting ambitions be supported by more stable organisational revenue and infrastructure that meet its needs.
Hanner to decide on involvement in the complex’s operation
Project developer Hanner decides on arrangements for operating the arena and the entire Vilnius multifunctional complex. Civinity has discussed the possibility of contributing to the operation, but its involvement and the specific scope of its responsibilities have not yet been agreed.
„We have discussed the possibility of Civinity also contributing to the operation. We have many years’ international experience managing large and complex facilities so that we can be of use. However, whether and to what extent our expertise will be required is a matter for Hanner to decide,“ Deividas Jacka concludes.
Civinity will provide separate updates on further decisions regarding the proposal to invest in Vilnius Rytas.