Vast majority of Spanish clubs approve huge deal with private equity firm CVC that could be worth up to £2.3billion… but Barcelona and Real Madrid plan legal action against the group and LaLiga boss Javier Tebas if the investment goes ahead
- Only four clubs in Spain’s top two divisions have voted against a new investment
- Equity group CVC could transform the league with a deal worth up to £2.3billion
- Real Madrid and Barcelona are threatening to sue the partnership over the plan
- The Liga arch-rivals were both involved in the proposed European Super League
The majority of Spanish league clubs approved a deal with an investment fund worth up to 2.7 billion euros (£2.3 billion) on Thursday – despite opposition from Real Madrid and Barcelona.
The league said 38 of the 42 clubs from the first and second divisions in Spain voted in favor of the deal with private equity firm CVC, which is intended to boost the clubs’ finances and help the league cut into the Premier League’s global dominance.
The league and CVC gave the four clubs who voted against the deal the option to opt out, meaning they would not benefit from the new funds and would not relinquish a percentage of their future revenues. Athletic Bilbao also opposed the agreement. The fourth club that voted against the deal was not disclosed.
La Liga President Javier Tebas has had the backing of 38 out of 42 clubs over a new investment
Barcelona chief Joan Laporta (left) and Real Madrid supremo Florentino Perez oppose the bid
Madrid and Barcelona said that although the deal would inject a significant influx of cash in the next three years, the agreement would hurt the clubs’ income from broadcast rights in the long term as they would be tied to it for the next 50 years.
Madrid and Barcelona had already said they planned to take legal action against the league and CVC if the deal was approved in the general assembly.
Madrid noted that both the Italian and German leagues refused the deal with CVC because they felt it undervalued their leagues.
The Spanish league was valued at 24.2 billion euros in the deal with CVC, which used to own Formula One and has been involved in other endeavours related to sports. The valuation would not change if Barcelona and Madrid opted out, the league said.
Athletic Bilbao also voted against the potentially lucrative Liga link-up with equity firm CVC
As part of the agreement, CVC would have a share of about 10 percent of the league’s revenues and a stake of 10 percent in a new commercial entity.
The clubs would receive 90 percent of the money paid by CVC, with 70 percent aimed at long-term investments. Some of the money would also go toward paying off debts and increasing their spending limits on players and coaches.
The league said CVC will not have control of the management of the competition, or the sale of its broadcasting rights.