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Actual Madrid converse out towards La Liga funding deal

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The capital city club is angry at how the Spanish league snuck in a massive cash injection from CVC Capital Partners this week

Real Madrid have opposed a € 2.7 billion (£ 2.3 billion / US $ 3.2 billion) investment deal that La Liga signed with private company CVC.

CVC Capital Partners has acquired a 10 percent stake in the Spanish first division club, as it became known on Wednesday.

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

What was said

A statement posted on the club’s website said: “This agreement was entered into without the involvement or knowledge of Real Madrid and LaLiga today granted us restricted access to the terms of the agreement for the first time.

“The clubs have signed their audiovisual rights exclusively for sale on a competitive basis for a period of three years. This agreement expropriates 10.95% of the clubs’ audiovisual rights for the next 50 years, in violation of the law, due to a misleading structure.

“The negotiations were conducted without a competitive process and the financial terms agreed with CVC Capital Partners give them annual returns of over 20%. This opportunistic fund is the same one that has tried to reach similar agreements with the Italian and German leagues.

“Real Madrid cannot support a company that is turning the future of 42 Primera and Segunda División clubs into a group of investors, let alone the future of clubs that will qualify over the next 50 years.

“Real Madrid will convene the Representative Members’ Meeting to debate the agreement and to discuss the significant loss of equity that is unprecedented in our 119-year history.”

What’s the deal between La Liga and CVC?

La Liga says 90 percent of CVC’s cash injection goes to clubs across the country, with € 100 million going to women’s football.

As the top performing teams in the Spanish premier league, Barcelona and Real Madrid would receive most of the funding.

According to reports, however, only 15 percent of the money is allowed to be used for transfers and player salaries, with the remainder being used for infrastructure.

“In the short term, there are challenges that need to be addressed urgently and that require significant financial investment,” said La Liga President Javier Tebas.

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

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

“And all of this is supported by a competitive model that is becoming more digital, more oriented towards 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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