LaLiga clubs endorse CVC deal

Spain’s LaLiga has signed a strategic partnership deal with private-equity outfit CVC after securing the backing of a majority of its clubs for LaLiga Impulso, its plan to boost the global growth of the league.

Thirty-seven out of 42 clubs backed the plan, with Real Madrid, Barcelona and Athletic among the notable exceptions.

The agreement between LaLiga and CVC will see the league and clubs receive a total of €1.994 billion which will the league says will be used for technology, innovation, internationalisation, and sporting growth initiatives.

In return, CVC will get an 8.2% share in a new company set up to manage the league’s TV rights for the next 50 years.

Madrid, Barcelona and Athletic have expressed strong opposition to the agreement and have said they will take legal action to overturn it.

The injection of nearly €2 billion commits participating clubs to allocating up to 70% of the funds to investments linked to infrastructure, international development, brand and product development, talent acquisition, communication strategy, innovation and technology, and a content development plan for digital platforms and social media. Up to 15% can be used to sign players, with the remaining 15% for reducing debt.

LaLiga claims that the deal sets a precedent for other European leagues and the wider sports and entertainment industry.

It says the deal will be worth €24.25 billion, citing an evaluation by Rothschild & Co and Duff & Phelps.

LaLiga was advised by Uría Menéndez, KPMG, and Bibium Capital, while CVC was advised by Latham & Watkins, Two Circles, and Oliver & Ohlbaum.

LaLiga President Javier Tebas said: “This agreement is a historic milestone not just for LaLiga but also for football and sport in general. LaLiga and its clubs now have the best partner possible to successfully pre-empt and navigate changes on the horizon and I believe that we are setting a precedent for other leagues in Europe and around the world to follow.”

Nick Clarry, managing partner and head of Sports, Media & Entertainment at CVC, said: “We are truly grateful for the trust that LaLiga and its clubs have placed in us. LaLiga is the top sports competition in Spain and one of the leading competitions in the world. We are excited to help in this new phase for the long-term benefit of fans, players and the competition.”