Legal Correspondent: Samiksha Anil Malvade
15th December 2021: 37 clubs have voted in favor of receiving a cash injection from top private equity firm CVC. This deal between the 1st and 2nd division clubs of Spain consists of CVC buying a 8.2 % share-packet in the company that will receive revenue from the broadcasting and sponsorship deals of the clubs partaking in La Liga. This “La Liga boost” has been considered to be improper and illegal by Real Madrid, Barcelona and Athletic Bilbao. The trio states that the deal between CVC and La Liga has basically forced the penniless clubs to give away their important broadcasting and sponsorship rights in an act of desperation. Furthermore, they state that the deal goes against the fundamental principles of sports law in Spain as it takes away the individual autonomous rights of the clubs. The trio have put forth an alternative deal contrasting the allegedly expensive CVC deal by bringing in three additional investors. HDFC, JP Morgan and Bank of America will together inject 2 billion euros into the league in exchange for an annual 115 million euro payment for the next 15 years.
The deal put forth by the three clubs has swiftly been rejected by La Liga and president Javier Tebas has moved forward with the CVC deal.
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