Barcelona and Real Madrid have launched protests regarding the proposed multi-billion-dollar investment and the revenue-sharing deal between the Spanish league and private equity firm CVC.
According to reports, CVC are expected to inject £2.3 billion into the Spanish league they would own 10% of the league’s revenue. The private equity firm would have a 10% stake in La Liga‘s business as well.
As per the agreement, the money invested by the private equity firm will be distributed among the Spanish clubs.
The money would mostly be used to develop the infrastructure at the clubs and support women’s football.
Apparently, the likes of Atletico Madrid and Sevilla approved the planned CVC deal on Wednesday and the proposition will now be put to a vote by all league members from the top two divisions of Spanish football.
Real Madrid have threatened to take legal action against the Spanish league.
Apparently, the CVC investment could end the chances of conducting the European Super League in the future as well.
Accepting the private equity investment now would mean but the two Spanish giants would miss out on massive revenues in future.
Furthermore, the investors would control the futures of the Spanish clubs over the next 50 years as per the agreement.
Statements from Real Madrid and Barcelona
A Real Madrid statement read: “This agreement was reached without the involvement or knowledge of Real Madrid and today, for the first time, La Liga has given us limited access to the terms of the agreement.
“The clubs have signed over their audiovisual rights exclusively for their sale on a competitive basis for a period of three years. This agreement, by way of a misleading structure, expropriates 10.95% of the clubs’ audiovisual rights for the next 50 years, in breach of the law.
“The negotiation was carried out without competitive proceedings and the financial conditions agreed with CVC Capital Partners give them annual returns of over 20%. This opportunistic fund is the same which tried and failed to reach similar agreements with the Italian and German leagues.
“Real Madrid cannot support a venture which hands the future of 42 Primera and Segunda División clubs over to a group of investors, not to mention the futures of those clubs who qualify over the next 50 years.
“Real Madrid will convene the Assembly of Representative Members to debate the agreement and discuss the significant loss of equity, unprecedented in our 119-year history.”
Barcelona said: “FC Barcelona considers that the operation that has been announced has not been sufficiently discussed with the clubs (the owners of the TV rights); that the amount is not congruent with the years of duration, and the deal affects part of all clubs’ audiovisual rights for the next 50 years.
“The terms of the contract that La Liga is describing condemn Barcelona’s future with regard to broadcasting rights.
“FC Barcelona wishes to express its surprise at an agreement driven by La Liga in which the teams’ opinions, including those of FC Barcelona, have not been taken into account.
“There has not even been a presentation of options offered by other competitors in order to evaluate the pros and cons in a post-pandemic situation in which there are still many questions that are left unanswered.”
