La Liga-CVC deal: Despite opposition from Real Madrid and Barcelona, Spain’s top soccer clubs approved a $2.37 billion investment from private equity fund CVC Capital Partners for an 8.2% stake. It would become a new company that would manage broadcasting revenues, a source close to LaLiga said. It comes as a great relief for CVC which has been subjected to BCCI’s inquiry due to its alleged investment in betting companies. Follow La Liga and IPL 2022 Live Updates on InsideSport.IN.
The “LaLiga Boost” deal marked the first investment agreement from a private equity firm in a major European League. During a LaLiga General Assembly, 37 clubs voted in favour of the deal, while Real Madrid, Barcelona, Athletic Bilbao and Ibiza voted against, and one club abstained, the source told Reuters. At least 32 of the 42 teams from the Spanish first and second divisions needed to back the deal to get it through.
La Liga-CVC deal: Despite Barcelona, Real Madrid’s opposition, La Liga clubs give nod to $2.37 billion CVC deal
Goldman Sachs will contribute with a portion of the funds that CVC will invest in the Spanish football league and recover over 50 years, sources from LaLiga and the fund had said. A source close to Real Madrid told Reuters that the club will begin legal action against LaLiga as they threatened to do after they announced their objection in August.
The deal was given green signal after Barcelona and Real Madrid offered an alternative to the plan offered by CVC.
La Liga-CVC deal: Despite Barcelona, Real Madrid’s opposition, La Liga clubs give nod to $2.37 billion CVC deal
Real Madrid and Barcelona along with two other clubs have proposed a 2 billion euro ($2.26 billion) bank credit to finance the La Liga as opposed to the approved cash injection offered by private equity fund CVC.
The CVC deal entails a one-off payment of 2.7 billion euros to the league and in exchange, CVC will be receiving 11% of the league’s television rights over the next 50 years. However, both the La Liga powerhouses will now be in big trouble.
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