La Liga: Clubs agree to a €2.1bn rights deal previously rejected by Real Madrid and Barcelona

FILE PHOTO: La Liga President Javier Tebas poses before an online interview with Reuters at the La Liga headquarters in Madrid, Spain January 27, 2021. REUTERS/Susana Vera/File Photo/File Photo

La Liga Rights: Clubs agree to a €2.1bn rights deal previously rejected by Real Madrid and Barcelona: The La Liga clubs have approved a €2.1 billion (£1.95bn) deal that will see 10% of the league’s commercial rights acquired by a private equity firm. The two heavyweights Real Madrid and Barcelona, along with Atletico Bilbao, and a second division side were against this decision.

Real Madrid and Barcelona had already opposed the deal with investment fund CVC, saying that although it would provide an important cash influx over the next three years, it would ultimately hurt the teams’ broadcast rights in the long term.

La Liga president Javier Tebas said the deal with CVC Capital Partners is the “answer to the challenges” clubs face.

La Liga Rights: Clubs agree to a €2.1bn rights deal previously rejected by Real Madrid and Barcelona

The league says the deal – which it has titled ‘Boost LaLiga’ – will grow its clubs and give them money to spend.

Spain's La Liga to sell 10% stake worth $3.2B to equity firm CVC | Daily  Sabah

Spanish football federation: Madrid and the federation have often been at odds with the league and its president, Javier Tebas.

As part of the agreement, the private equity firm which used to own Formula One would have a share of about 10% of the league’s revenues and a stake of 10% in a new commercial entity that values the league at 24.2 billion euros ($28.4 billion).

The clubs would receive 90% of the money paid by CVC, with 70% aimed at long-term investments. Some of the money would also go toward paying off debts and increasing their spending limits on players and coaches.

La Liga Rights: Clubs agree to a €2.1bn rights deal previously rejected by Real Madrid and Barcelona

The original investment was due to be €2.7bn (£2.3bn), but due to the four clubs refusing it will be reduced.

Barcelona president Joan Laporta previously said it was like “mortgaging the club’s rights over the next half-century“.

CVC, which has a deal with rugby’s Six Nations and formerly owned Formula One, has described threats of legal action as “totally disproportionate and manifestly unfounded“.

La Liga Rights: Clubs agree to a €2.1bn rights deal previously rejected by Real Madrid and Barcelona