The Spanish Football Federation (RFEF) has called LaLiga’s agreement to sell 10% of its business to investment fund CVC Capital Partners for 2.7 billion euros “totally illegal” and “appalling”.
Ahead of Thursday’s general meeting in which two-thirds of the 42 clubs that make up La Liga must ratify the approved sale, the Spanish FA have expressed disapproval.
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“The RFEF, aware of the various complaints and remarks formulated by various clubs of the first and second division, expressed its firm opposition to this agreement, by means of a burofax (supporting document to third parties) addressed to the LNFP (Spanish league), “said the RFEF press release.
Reuters quoted a source on Wednesday as saying Goldman Sachs will provide a syndicated loan of € 1 billion ($ 1.17 billion) to the planned € 2.7 billion investment of private equity firm CVC. in La Liga. El Confidencial newspaper first reported Goldman’s involvement in the proposed deal,
Tebas responded with sarcasm to the Spanish federation’s statement and wrote: “Finally, the RFEF released the long-awaited statement regarding the Super League supporting UEFA and the leagues. Oh no! Regarding the (Super League) project that wiped out Spanish football THEY DON’T TALK. Does not fail. You have to follow the instructions … they didn’t even study the documents! “
The Spanish FA at odds with La Liga is nothing new. Since the election of Luis Rubiales as head of the RFEF in May 2018, many decisions in Spanish football have been accompanied by litigation, some of which have had to be resolved in court.
RFEF’s statement comes less than 24 hours after Real Madrid announced plans to take legal action against La Liga president Javier Tebas and CVC Capital Partners over the deal.
Moreover, Madrid have warned that they will take all possible steps to prevent the deal, which was unanimously approved by the league’s executive committee last week, from going through.
Barcelona said in a statement that they considered the deal “inappropriate”.
The coronavirus pandemic has created a sense of urgency to bring more money to La Liga. For their initial investment, CVC will pocket 11% of the money raised by La Liga through the sale of television rights and sponsorship for the next 40 years.
The Spanish federation said the La Liga deal “is appalling and regrettable for the future of all Spanish football and, on the other hand, fantastic for a fund and other possible beneficiaries”.
“By analyzing the operation from a fiftieth anniversary perspective, which is that provided by the LNFP and the CVC, as well as its content, it is clear that it goes beyond what one might understand as the league’s powers in terms of audiovisual marketing. rights and may irreversibly affect the future of the competition, ”added the RFEF.
ESPN reported last week that Madrid believed the sale “endangered” their business opportunities by allowing CVC to take money from, say, television rights without the club agreeing to the deal.
Barça considers that the amount (2.7 billion euros) “is not consistent with the years of duration and that part of the audiovisual rights of all clubs are affected for the next 50 years”.
The money raised during the sale will be distributed among the clubs in the form of a loan, repayable over a significant number of years. Payments will be based on contributions from clubs since the centralization of audiovisual rights in 2015, with Madrid allocating around € 261m and Barca € 270m.
Clubs must spend at least 70% of the money on investments related to long-term growth, 15% on refinancing their debt and 15% can be used to increase spending limits imposed by the league.
Villarreal are among the top clubs that will vote in favor of the deal.
“We have to put La Liga in the best possible place,” Villarreal president Fernando Roig said. “I don’t understand the reasons why Real Madrid and Barcelona oppose the CVC deal. We need to strengthen the structures and improve the image of our league. It’s great for football if we know how to use these resources to improve La Liga, after the problems we have faced due to the pandemic. “