Real Madrid and Barcelona have opposed the $3.2bn (€2.7 billion) investment deal La Liga struck with private equity firm CVC.
It was announced on Wednesday that the funding was as a result of CVC Capital Partners having purchased a 10 per cent stake in the Spanish top-flight.
The top two Spanish clubs Barcelona and Real Madrid have kicked against the initiative with Madrid saying they were not informed of the deal. They have also claimed that some of the terms are against the law.
Real Madrid’s Stance
A statement published on Real Madrid’s official website read:
“This agreement was reached without the involvement or knowledge of Real Madrid and today, for the first time, La Liga has given us limited access to the terms of the agreement.
“The clubs have signed over their audiovisual rights exclusively for their sale on a competitive basis for a period of three years. 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.
“The negotiation was carried out without competitive proceedings and the financial conditions agreed with CVC Capital Partners give them annual returns of over 20%. This opportunistic fund is the same which tried and failed to reach similar agreements with the Italian and German leagues.
“Real Madrid cannot support a venture which hands the future of 42 Primera and Segunda División clubs over to a group of investors, not to mention the futures of those clubs who qualify over the next 50 years.
“Real Madrid will convene the Assembly of Representative Members to debate the agreement and discuss the significant loss of equity, unprecedented in our 119-year history.”
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Barcelona’s Stance
Barcelona also released a statement on their website which states:
“FC Barcelona feels it is inappropriate to sign a half-century agreement given the uncertainties that always surround the football world.
“The terms of the contract that La Liga is describing condemn FC Barcelona’s future with regard to broadcasting rights.
“FC Barcelona wishes to express its surprise at an agreement driven by La Liga in which the teams’ opinions, including those of FC Barcelona, have not been taken into account. There has not even been a presentation of options offered by other competitors in order to evaluate the pros and cons in a post-pandemic situation in which there are still many questions that are left unanswered.”
According to La Liga, 90 per cent of the funding from CVC will go to clubs throughout the country, with €100 million going to the women’s game.
Reports say that only 15 per cent of the money given to each club will be permitted to be used in transfers and players’ wages. The rest have to be devoted to infrastructure.
Real Madrid and Barcelona are both currently deep in debt with Los Blancos unable to sign players and the Catalan club forced to say goodbye to Lionel Messi due to financial stringencies and La Liga rules.
It is worthy of note that the majority of clubs from the first and second divisions have to give their approval for the deal to go through. It remains to be seen how the matter would be resolved with the aggrieved parties.
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