The Spanish top-flight better known as La Liga recently announced the sale of 10% of its stakes to the private equity and investment advisory firm CVC Capital Partners.
The stakes were sold for a whopping €2.7 billion to the firm, however, the deal has not gotten the approval of the club yet. CVC will be looking to enhance the financial capabilities of the league’s club after the financial struggle in the pandemic.
La Liga’s executives said, “An inclusive, equitable and democratic strategic agreement, which not only shields the economic viability of all Spanish football clubs, but also opens a new present and future for them by allowing them to advance in their development and transformation for a decade. The objective of this agreement is to lead the transformation that the entertainment world is experiencing and to maximize all the growth opportunities that the clubs have to develop a new business model that allows them to diversify and intensify income generation and marketing models.”
The deal includes both tier one and tier two of Spanish football and along with the deal, the clubs will have to focus on rebranding and infrastructure development. A total of 42 clubs will come under the agreement including all the teams from both leagues.
The league will kick off from August 14 and will see Atletico Madrid go on and try to defend their title against the likes of Real Madrid and FC Barcelona.