Madrid, 13 August (IANS) La Liga clubs have voted to approve a € 2.7 billion investment deal with capital investment firm CVC Capital Partners.
The agreement was approved late Thursday night with 38 votes for and four against from the 42 clubs in the Spanish top flight and second division, where FC Barcelona, Real Madrid, Athletic Club Bilbao and Real Oviedo voted against.
Under the agreement, the clubs will receive a cash injection in the form of a long-term loan to be repaid over a 40-year period, during which 15 per cent of this money can be spent on salaries and new signings and the rest on infrastructure, youth systems and women’s teams.
In return, CVC will receive 11 percent of revenue from all of La Liga’s non-audiovisual businesses and 10 percent of revenue from audiovisual businesses over the next 50 years, reports Xinhua.
Real Madrid, Barcelona, Athletic Club and Oviedo have all opted out of receiving money from the scheme, with the three top-flight clubs all issuing statements highlighting their opposition to a deal that would “mortgage” them for 50 years.
Athletic Club points out that CVC would “recover their investment in 10 years, but the clubs will need 50 years. In addition to mortgaging something that is ours … we should waive income from audiovisual rights that we currently have full capacity to manage. ”
Real Madrid had previously announced lawsuits against La Liga and its president, Javier Tebas over the deal, and also pointed out that Serie A and the Bundesliga had rejected previous efforts by CVC to invest in their competitions, Xinhua reports.
The Spanish Football Federation (RFEF) also expressed its opposition, saying on Wednesday that it was “completely illegal” and would have consequences for the game.