Real Madrid speak out against La Liga investment deal

The capital club are annoyed by the way the Spanish league snuck in a massive cash injection from CVC Capital Partners this week

Real Madrid have expressed their opposition to a €2.7 billion (£2.3bn/$3.2bn) investment deal La Liga struck with private quity firm CVC.

CVC Capital Partners has purchased a 10 per cent stake in the Spanish top-flight, it was announced on Wednesday.

Madrid say they were not informed of the deal and claim that some of the terms are against the law.

What has been said?

A statement published on the club’s website read: “This agreement was reached without the involvement or knowledge of Real Madrid and today, for the first time, LaLiga 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.”

What is the deal between La Liga and CVC?

La Liga says that 90 per cent of the cash injection from CVC will go to clubs throughout the country, with €100 million going to the women’s game.

As the top-performing teams in the Spanish top-flight, Barcelona and Real Madrid would get the biggest share of the funds.

But only 15 per cent of the money will be permitted to be used in transfers and players’ wages, according to reports, with the rest being devoted to infrastructure.

“There are challenges in the short term that must be faced urgently and that require a significant financial investment ,” La Liga president Javier Tebas said.

“The strategic agreement with CVC will revolutionise the management model of football clubs and will make the competition much more attractive and exciting.

“There will be better facilities, better players and a better fan experience in everything related to clubs.

“And all this supported by a competition model that will be more digital, more focused on the generation and analysis of data and more international.

“We are laying the foundations to make La Liga the most attractive football competition in the world.”

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