Rytas Vilnius has signed an agreement with Civinity AB, which provides building maintenance, engineering and technological solutions. Under the agreement, Civinity is set to become a stakeholder in the club.
The group aims to become a long-term strategic stakeholder in Rytas and contribute to the organisation’s growth.
At the General Meeting of Rytas Stakeholders held on 9 October, the stakeholders approved the admission of Civinity as a new stakeholder in the club. Following this decision, both organisations proceeded to the next stage of their cooperation.
The organisations signed the relevant agreements, and Civinity made its first capital contribution of EUR 500,000. However, Civinity will only become a full stakeholder once the approvals required by law have been obtained, including approval from the Competition Council of the Republic of Lithuania. At that point, Civinity will acquire 13 votes at the General Meeting of Stakeholders.
“The signing of this agreement marks an important milestone for the entire Rytas organisation. Just a few years ago, we spoke about the need to strengthen the club’s financial stability and build a solid foundation for long-term growth. Today, we are seeing concrete steps in that direction.
We are pleased that a partner will be joining us who believes not only in the team’s current potential but also in the future of the entire organisation. This cooperation provides greater certainty when planning the club’s operations, investing in the development of young basketball players and pursuing the highest sporting achievements,” says Martynas Giga, CEO of Rytas Vilnius.
A total of three monetary contributions to the club’s stakeholder capital are planned. Once the relevant approvals have been obtained, all contributions have been made and the other specified conditions have been fulfilled, the group could acquire 41 votes at the General Meeting of Stakeholders.
The total amount of the planned monetary contributions is EUR 1.5 million. Additional investments in infrastructure are also envisaged, with their financial details to be announced once the transaction has been completed.
The cooperation aims not only to strengthen the club’s financial capabilities but also to contribute to the sustainable development of the entire Rytas organisation. One of the key priorities is the development of sports infrastructure, which would provide better conditions for both the first team and the development of young basketball players.
“We view our investment in Rytas as a long-term business project with the potential to increase revenue and achieve profitable operations. The club has a strong brand, a loyal fan base and a close connection with Vilnius. By drawing on our experience in managing and growing businesses, we want to help unlock this potential more effectively – increasing matchday revenue, developing business partnerships and strengthening the club’s commercial operations.
Looking ahead, we recognise how important it is for the club to have a long-term home arena and clear opportunities to maximise its commercial potential. Such decisions must be based on economic benefits and responsible financial planning. Our aim is for improved financial performance to enable the club to steadily raise its sporting ambitions – to compete at the highest level of European basketball and challenge for the best possible results,” says Deividas Jacka, Chairman of the Board of Civinity.
The partnership is aligned with Civinity’s Smart Green City strategy, which includes the development of sports infrastructure. The group intends to contribute to the growth of Rytas through its expertise in business management and financial planning, while sporting decisions will remain the responsibility of the club’s professionals.
Both organisations also plan to jointly assess infrastructure needs and explore solutions that would benefit both the first team and the club’s youth development system.
The addition of a new stakeholder will mark another step towards ensuring the long-term stability of the Rytas organisation, creating more favourable conditions for its development and strengthening the club’s future competitiveness.
The long-term objective of the partnership is to strengthen Rytas’ financial self-sufficiency, enabling the club to finance an increasing proportion of its first-team development and youth basketball programmes through its own generated revenue.