The pandemic has brought the Spanish league and clubs into a huge financial crisis due to the drop in revenues along with the league’s star player, Lionel Messi also leaving the Catalans with a move to the League 1 giants Paris Saint-German. This deal has further intensified as Messi’s departure is sure to hit the market value of the Spanish league as well.
The La Liga executive committee recently approved the CVC deal with 38 out of 42 teams voting in favour. Clubs like Barcelona and Athletic Bilbao opposed the CVC deal, while Real Madrid has said it will be taking legal action to stop it.
Madrid in one of their statements said: “Real Madrid’s executive committee has met and unanimously decided to take civil and penal legal action against the president of La Liga, Javier Tebas, and against Javier de Jaime Guijarro, head of the CVC investment fund, as well as against CVC Capital Partners SICAV-FIS investment fund itself.”
The deal was earlier set to provide $3.17 billion to La Liga in exchange for 11% of the league’s broadcast and sponsorship rights for 50 years. But with some of the teams opting out, the deal is now would likely be between $2.47 billion and $2.58 billion.
The New York bank, Goldman Sachs would now be the lending syndicate for CVC’s investment that will give the private equity firm a stake in La Liga and further it is also reportedly organizing a credit facility for FC Barcelona who is already in €1,173 million in debt and is also exceeding the salary cap of La Liga.