Google News British private equity CVC Capital injects €1.9 billion into Spanish La Liga
by SOURAV D | VIEW 2146
Spanish top-tier soccer clubs of La Liga, Liga one and Liga two had approved an influx of €1.99 billion in fresh liquidities from a British private equity firm CVC Capital Partners in a deal what could be contemplated as the first of its kind in European football, though Spanish La Liga legends like of Real Madrid and Barcelona had voted against the deal. In factuality, 37 out of 62 soccer clubs of La Liga, Liga One and Liga two had voted in favour of a “La Liga Boss” deal under which the UK-based private equity fund had purchased an 8.2 per cent stake in a new Spanish La Liga management company. Aside from that, under financial terms of the deal, CVC Capital would be subject to sponsorship rights alongside La Liga broadcasting revenues. Nevertheless, at least 32 votes from 42 clubs of La Liga and Liga One were required to back the plan, however, Real Madrid, Barcelona, Ibiza alongside Athletic Bilbao had voted against the deal.
La Liga receives €2bn boost from CVC Capital
Nonetheless, latest La Liga move to sell off an 8.2 per cent stake to CVC Capital followed an August media headline that had said the deal could be worth over €2.7 billion, however, the deal was downsized to a €1.99 billion as La Liga behemoths such as Real Madrid, Barcelona and Athletico Bilbao had decided against the deal.
Besides, the fiscal jab would be injected over next three years. Meanwhile, expressing an out-and-out optimism over the deal, La Liga President Javier Tebas said, “This is a new milestone in the history of La Liga and its clubs.
It allows us to continue our transformation towards a global digital entertainment company, improving the competition and enhancing the fan experience”.
