Real Madrid confirms opposition to CVC investment in La Liga

Unquote team
05 August 2021

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La Liga's proposed formation of a new commercial venture with CVC Capital Partners is opposed by the Spanish football club Real Madrid.

Real Madrid issued a statement saying that the agreement with CVC was reached "without the involvement or knowledge of Real Madrid", with La Liga only giving "limited access" to the terms of the agreement after it was struck.

"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," Real Madrid added, having noted that the La Liga clubs have signed over their audiovisual rights exclusively for their sale on a competitive basis for a period of three years.

The club also argued that the negotiation was carried out "without competitive proceedings" and objected to CVC targeting a 20% annual return. "This opportunistic fund is the same that tried and failed to reach similar agreements with the Italian and German leagues," the statement continued.

CVC is to acquire a minority shareholding in the new venture, La Liga Impulso, for EUR 2.7bn in a deal that values the commercial rights business at EUR 24.2bn. La Liga Impulso would handle La Liga's digital rights, sponsorship and broadcast rights.

The deal was unanimously approved by La Liga's Comisión Delegada on Wednesday 4 August, according to a recent Financial Times report, which noted that the committee includes 14 clubs, but not Real or the other of Spain's big two clubs, FC Barcelona. The 42 clubs that comprise La Liga's two divisions are to vote on the deal as early as next week, according to the newspaper.

Real's opposition leaves CVC and La Liga needing the backing of other La Liga clubs, but unanimous support may not be necessary for the deal to proceed, the report continued. FC Barcelona's opinion of the deal is not known, the item said.

In its statement, Real Madrid said it will convene the Assembly of Representative Members to debate the agreement and discuss the "significant loss of equity, unprecedented in [the league's] 119-year history".