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LaLiga CVC Agreement: Real Madrid, Barca Oppose Deal

LaLiga CVC Agreement: Real Madrid, Barca Oppose Deal
LaLiga CVC Agreement: Real Madrid, Barca Oppose Deal

The LaLiga CVC agreement, has been opposed by Real Madrid and Barcelona, as they issue a separate statement making their opposition known.

According to the report by Marca, the LaLiga CVC agreement would see about 2.7 billion euros in LaLiga Santander clubs, which would have offered Los Blancos a helping hand in pursuit of Kylian Mbappe, but the 13-time European Champions are not keen on the idea, calling it “an opportunistic fund”.

Real Madrid’s Response To The LaLiga CVC Agreement Reads:

 “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.”

Barcelona’s Statement on the LaLiga CVC Agreement Reads:

A statement from the Catalan side read: “FC Barcelona considers that the operation that has been announced has not been sufficiently discussed with the clubs (the owners of the TV rights); that the amount is not congruent with the years of duration, and the deal affects part of all clubs’ audiovisual rights for the next 50 years.

“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 Marca, LaLiga have been working on the operation for a year now, and the investment will facilitate growth at all LaLiga Santander clubs once it has been approved. Fifteen percent of the 2.7 billion euros can be put straight to use to reinforce squads and to sign players, with the rest going to structural improvements at stadiums and facilities.

Once LaLiga Santander’s clubs have approved the investment, which values LaLiga at over 24 billion euros, around 270 million euros will go to Barcelona, while Real Madrid will take closer to 261 million euros. 

It also comes as good news for the smaller sides, namely Levante, who were having to tighten their belts in order to meet LaLiga’s salary cap.

The 15 percent for investment will be distributed by taking the television income of the last seven seasons into account.

Keys to the agreement

LaLiga are not selling any of their rights, but CVC are investing money that LaLiga will manage and then a pay a fee to CVC

CVC, meanwhile, run the risk associated with any business deal. If things go well, they win. If things go badly, they lose out. There are no guarantees covering them or protecting them.

LaLiga confirmed in a statement that they are looking to “continue the transformation towards a global digital entertainment company, improving the competition and the fans’ experience.

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