Spain’s La Liga announces €2.7 bn deal with CVC Capital Partners

Spain’s La Liga announces €2.7 bn deal with CVC Capital Partners

Well-known private sports association, La Liga has reportedly agreed to a €2.7bn deal with private equity frontrunner, CVC, in a bid to involve the latter in running a large European football league for the first time.

Sources close to La Liga, which looks after the top two divisions of Spanish football, have disclosed that it would create a new business in order to take authority of most of the activities, in which CVC Capital Partners would account for a 10% stake.

Apparently, the deal would value La Liga at around €24.3bn. Meanwhile, Clubs would acquire nearly 90% of funds from CVC’s investment, which is inclusive of money for women’s football.

For those unversed, the deal surfaces only three months post 12 of the most significant European clubs, including Spain’s Atlético Madrid, Real Madrid, and FC Barcelona attempting to establish the European Super League, a breakaway competition, to gather lucrative cash injections. However, it swiftly collapsed following a massive backlash from fans, players as well as governments.

As per reports, Sports clubs across the globe have witnessed a slump in revenues during the last 18 months, given the disrupted competitions and the massive shutting out of fans from stadiums. Contrarily, global private equity firms are flooded with money as investors, including pension funds are vying for higher returns.

According to sources, La Liga would be maintaining control over sporting issues and the management of sales of television rights. It has also been reported that the deal would highlight the growth of the league’s digital presence, such as direct interactions with fans, brand investments, and broader reach to more audiences worldwide.

However, the plan is likely to face opposition from several of the league’s most influential members. Apparently, La Liga’s most successful team, Real Madrid, has opposed the deal, which will be put to a vote by 42 teams in the top two divisions.