La Liga and CVC Capital Partners have finally penned down a strategic partnership that was left on the pending list for months. Following this association both the entities will work towards boosting the global presence of the Spanish league and its clubs.
The partnership was initially tabled back in August, but as Real Madrid, Barcelona and Athletic Bilbao opposed the decision then the matter was taken to the Spanish court. Following which the deal was given a stay order and hearing about it went on in these last couple of months.
However finally, the partnership has been given a go-ahead as La Liga announced a new strategic partnership with CVC Capital Partners. The deal was favoured by 37 clubs out of the 42 clubs present in the La Liga and Segunda Division. While Real Madrid, Barcelona and Athletic Bilbao are still opposing the decision. But to give a go-ahead to the partnership, it needed 32 clubs out of 42 to be in favour of the deal, which was eventually achieved.
Speaking on the occasion, La Liga president, Javier Tebas said: “This agreement is a historic milestone not just for La Liga but also for football and sport in general. La Liga and its clubs now have the best partner possible to successfully pre-empt and navigate changes on the horizon and I believe that we are setting a precedent for other leagues in Europe and around the world to follow.”
Adding to it, Nick Clarry, managing partner and head of Sports, Media & Entertainment at CVC, said: “We are truly grateful for the trust that La Liga and its clubs have placed in us. La Liga is the top sports competition in Spain and one of the leading competitions in the world. We are excited to help in this new phase for the long-term benefit of fans, players and the competition.”
This agreement between La Liga and CVC will be benefiting the league and its clubs with an injection of €1.994 billion of funds, which will be allocated to be used for technology, innovation, internationalisation, and sporting growth initiatives.
The project labelled as “Boost La Liga/La Liga Impulso” will allow the Spanish league and its clubs to adapt to the modern-day demands of the sector with the backing of CVC, a partner with huge experience. While this agreement sets a goal for other European leagues to wider the sports and entertainment industry.
The injection of €2 billion funds will be distributed among all the clubs out of which 70% could be used by them to invest in infrastructure, international development, brand, product development, talent acquisition, and innovation and technology.
While, 15% of it can be used to sign players for the club, and the last 15% remaining should be allocated to help them in reducing their rising debt.