By Admin | about 1 year ago
In a bid to alleviate the financial distress caused by the pandemic, La Liga has agreed to sell a 10 percent stake to CVC Capital Partners. The 2.7 billion euros deal means the Spanish League will be valued at 24.3 billion euros.
This could be the first time private equity would be involved in the running of a major European football league should the deal come through.
However, this is not the first time an equity firm targeted a major European football league. All the previous attempts were met with backlash about handing over control of the league to outside investment groups.
The previous year, CVC were close to striking a similar deal with the Italian top-flight league, Serie A. The talks were stalled after resistance from elite clubs.
Top clubs from Bundesliga also voted against involving private players in the operations of the German league.
In the wake of the pandemic, private investors are targeting sports deals as football leagues are suffering from heavy financial distress. The deal would prove to be a massive bailout for them in the midst of the ongoing crisis.
The deal is not yet done as talks are ongoing with the top clubs. There has been strong opposition from Barcelona and Real Madrid, two of the biggest and most successful clubs in the league.
90 percent of the funds received from CVC’s investment would go to football clubs including Women’s football.
Barcelona and Real Madrid, two top clubs struggling with debt, would stand to receive 260 million euros each which could ease their financial struggles.