LaLiga Deal With CVC Capital ‘Illegal’ — Spanish FA News

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LaLiga Deal With CVC Capital ‘Illegal’ — Spanish FA

By Daily sports on August 12, 2021

The Spanish Football Federation (RFEF) has called LaLiga’s agreement to sell 10% of its business to investment fund CVC Capital Partners for €2.7 billion as “completely illegal” and “appalling.”

Ahead of Thursday’s general assembly in which the two thirds of the 42 clubs that form LaLiga must ratify the approved sale, the Spanish FA has voiced their disapproval.

“The RFEF, being aware of the various complaints and comments made by various first and second Division clubs, has communicated its firm opposition to this agreement, through a burofax (a document that requires proof to third parties) sent to the LNFP (Spanish league)," the RFEF statement said.

On Wednesday, Reuters cited a source saying that Goldman Sachs will contribute a €1 billion syndicated ($1.17bn) loan to private equity firm CVC's planned €2.7bn investment in LaLiga. El Confidencial newspaper first reported Goldman's involvement in the proposed deal,

Tebas replied with sarcasm to the Spanish FA's statement and wrote: “Finally the RFEF has released the long-awaited statement regarding the Super League backing UEFA and the leagues. Oh no! Regarding the (Super League) project that erased Spanish football THEY DO NOT SPEAK OUT. Of course, to attack LaLiga they don’t fail. Instructions must be followed ... they haven’t even studied the documents!”

The Spanish FA disagreeing with LaLiga is nothing new. Since the election of Luis Rubiales as RFEF chief on May 2018, many decisions in Spanish football has been accompanied with a dispute, some of which have had to be resolved in court.

The RFEF statement comes less than 24 hours after Real Madrid announced plans to take legal action against LaLiga president Javier Tebas and CVC Capital Partners over the deal.

Moreover, Madrid warned it will take every action possible to prevent the agreement, which was unanimously approved by the league’s executive committee last week, from going through.

Barcelona said in a statement they consider the deal “inappropriate.”

The coronavirus pandemic has created a sense of urgency to bring more money into LaLiga. For their initial investment, CVC will pocket 11% of the money raised by LaLiga through the sale of television rights and sponsorship for the next 40 years.

The Spanish FA said LaLiga’s agreement “is appalling and regrettable for the future of all Spanish football and, on the other hand, fantastic for a fund and other possible beneficiaries.”

“When analysing the operation with a fifty-year perspective, which is the one provided by the LNFP and CVC, as well as its contents, we must conclude that it exceeds what could be understood as the powers of the league regarding the commercialisation of audiovisual rights and may irreversibly affect the future of the competition,” the RFEF added. (ESPN)

•PHOTO: Laliga President, Javier Tebas

Source Daily sports

Posted August 12, 2021