LaLiga News: FC Barcelona and Real Madrid oppose the new Spanish League deal- European heavyweights Real Madrid and FC Barcelona have expressed their dislike for the new LaLiga deal. The new deal saw the top tier of Spanish football reach an agreement with an investment fund in an agreement worth around $3.2 billion.
La Liga’s executive committee had earlier approved the “strategic agreement”. The main aim of the deal is to help provide funding to various clubs that have suffered losses amid the ongoing pandemic. The Spanish league struck a deal with the private equity investment fund CVC Capital Partners selling 10% of their revenues and new commercial entity rights on Wednesday.
LaLiga News: The majority of the Laliga clubs are expected to give their approval and go ahead with the deal during their upcoming meeting in the general assembly. However, two of the biggest clubs in Spain, Real Madrid and FC Barcelona have expressed resistance towards it.
Los Blancos released a statement expressing their opinion on it by saying, “This agreement was reached without the involvement or knowledge of Real Madrid and today (Thursday), for the first time, LaLiga has given us limited access to the terms of the agreement.”
The statement added, “The clubs have assigned the audiovisual rights exclusively for their commercialization in competition and for a period of 3 years. This agreement, using a deceptive structure, expropriates from the clubs 10.95% of their audiovisual rights for 50 years and is against the law.
The negotiation has been done without a competitive process and the economic conditions agreed with the CVC fund give it returns of more than 20% per year. It is this same opportunist fund that unsuccessfully tried similar deals with the Italian and German leagues.”
LaLiga News: LaLiga giants also claimed ” Real Madrid cannot support an operation that gives investors the future of 42 First and Second Division clubs and the future of the clubs that will qualify during these 50 years. Real Madrid will convene the assembly of compromise partners to discuss the agreement and the significant unprecedented losses in our 119-year history that such agreement would cause.”
Just like Real Madrid, FC Barcelona also shared a press release explaining their stand on the new LaLiga deal. It read as ” After analyzing LaLiga’s recent announcement of a strategic agreement with the CVC international investment fund, wishes to express the following position:
- FC Barcelona considers that the operation that has been announced has not been sufficiently discussed with the clubs (the owners of the TV rights); that the amount is not congruent with the years of duration, and the deal affects part of all clubs’ audiovisual rights for the next 50 years.
- FC Barcelona feels it is inappropriate to sign a half-century agreement given the uncertainties that always surround the football world. The terms of the contract that LaLiga is describing condemn FC Barcelona’s future with regard to broadcasting rights.
LaLiga News: The Catalan clubs’ statement added, ” FC Barcelona wishes to express its surprise at an agreement driven by LaLiga in which the teams’ opinions, including those of FC Barcelona, have not been taken into account. There has not even been a presentation of options offered by other competitors in order to evaluate the pros and cons in a post-pandemic situation in which there are still many questions that are left unanswered.”
LaLiga believes that the deal will not only provide funding and help clubs with their finances but also have a massive impact on the global presence of the league. The Spanish league has often found itself in the shadow of the Premier League and battle the top tier of English football by striking a deal with CVC.
LaLiga News: If the deal goes through, LaLiga clubs are set to receive 90% of the money paid by CVC. However, 70% of the revenue will be used for long-term structural investments. Such a massive cash influx will do a great deal of good for clubs like Real Madrid and Barcelona who find themselves under tremendous debt. It would be interesting to see if both clubs change their views on the deal and if the CVC agreement has any impact on the duo’s standing in European Super League.