La Liga

Barcelona and Real Madrid Reject LaLiga's Proposed £2.3bn CVC Investment

By Amreen
Barcelona joined rivals Real Madrid in denouncing an investment deal between La Liga and CVC
Barcelona joined rivals Real Madrid in denouncing an investment deal between La Liga and CVC / Visionhaus/Getty Images

Barcelona and Real Madrid have rejected LaLiga's £2.3bn investment deal with private equity firm, CVC, and are considering taking legal action against the pair.

CVC Capital Partners purchased a 10 percent stake in LaLiga on Wednesday, and while the league's executive committee has already unanimously approved the sale, it still needs to be ratified at next week's general assembly.

Madrid have claimed that they were not informed of the deal and that some terms are against the law. A statement published on the club's 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."

Barcelona said in a statement: "FC Barcelona considers that the operation that has been made public has not been sufficiently verified with the clubs [owners of the TV rights]; that its amount is not congruent with the years of duration and that part of the audiovisual rights of all the clubs are affected for the next 50 years.

"The Club considers the signing of a half-century contract inappropriate given the uncertainties that always surround the world of football. The conditions of the contract that LaLiga is talking about condemn the future of FC Barcelona in terms of audiovisual rights.

"FC Barcelona wants to show its surprise at an agreement promoted by Laliga in which it has not had the criteria of teams, like FC Barcelona itself, and does not even show options among more competitors to be able to evaluate the advantages and disadvantages in a scenario with many questions such as the post-pandemic."

The statements were released after Barcelona announced Lionel Messi would be leaving the club after 18 years due to financial constraints put on them by LaLiga.