MADRID: Spain’s top soccer clubs have approved a 1.994 billion euro investment from private equity fund CVC Capital Partners in the first deal of its kind in Europe, though four clubs — including Barcelona and Real Madrid — opted out.
On Friday 37 clubs voted in favor of the “LaLiga Boost” deal that buys CVC an 8.2 percent stake in a new company that will get revenues from LaLiga broadcasting and sponsorship rights.
Real Madrid, Barcelona, Athletic Bilbao and Ibiza voted against the deal, one source close to the negotiations told Reuters. There was no immediate official statement from those clubs or details on their next moves.
At least 32 of the 42 teams from the Spanish first and second divisions needed to back the plan. On top of the four objections, one other club abstained from voting, the source said, without naming the club. LaLiga had said the deal would be worth 2.7 billion euros when it was first unveiled in August. The lower 1.994 billion euro figure announced on Friday reflected the opt-outs and will be shared among the participating clubs and paid over a three-year period, the league said.
It marks the first investment agreement from a private equity firm in a major European League.
“This is a new milestone in the history of LaLiga and its clubs,” LaLiga president Javier Tebas said. “It allow us to continue our transformation toward a global digital entertainment company, improving the competition and enhancing the fan experience.”
Goldman Sachs will contribute with a portion of the funds that CVC will invest in the Spanish football league and recover over 50 years, sources from LaLiga and the fund have said.
The clubs are committed to allocate 70 percent of the funds to investments linked to new infrastructure and modernization projects. Up to 15 percent can be used to sign players, with the remaining 15 percent for reducing debt.
The deal looked like it was at risk of unraveling as Barcelona, Real Madrid and Athletic Bilbao last week proposed an alternative proposal which would see JPMorgan, Bank of America and HSBC jointly lend 2 billion euros in exchange for a fixed annual payment of 115 million euros for 25 years, a document seen by Reuters showed.
A source close to Real Madrid told Reuters the club will begin legal action against La Liga as they threatened when they announced their objection in August. The objecting clubs will not take any share of the CVC investment, though they will continue to receive their allocated share of TV rights money, LaLiga said.
Barcelona and Real Madrid, who have yet to comment on the deal, were among the driving forces behind the failed plan to launch a breakaway European Super League earlier this year and vowed to continue to set it up after a Madrid court ruled against UEFA.
It is the third time CVC has tried to invest in a top European league, after separate plans with Italy’s Serie A and Germany’s Bundesliga to sell some media rights to it were scrapped earlier this year.
CVC is also lining up preliminary bids for a stake in the French football league’s media rights business, a source told Reuters this week.
CVC has invested in Formula 1, Moto GP and rugby and is reported by Sky News to be behind a new commercial venture that is preparing to merge the Association of Tennis Professionals (ATP) and Women’s Tennis Association (WTA).
Spain’s LaLiga clubs approve CVC 1.9 bln euro capital injection
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Spain’s LaLiga clubs approve CVC 1.9 bln euro capital injection
- On Friday 37 clubs voted in favour of the "LaLiga Boost" deal that buys CVC an 8.2% stake in a new company
- Real Madrid, Barcelona, Athletic Bilbao and Ibiza voted against the deal
Al-Fateh grab second win on the trot, Al-Taawoun keep up pressure in title race
- Al-Fateh win 2 consecutive games for the first time this season and move to 11 points
- Al-Taawoun grab late winner against last-placed Al-Najma to stay within 4 points of Al-Nassr
RIYADH: Matchday 12 of the Saudi Pro League got underway on Monday with Al-Khaleej hosting Al-Fateh in the first of the evening’s three fixtures.
Despite producing a strong display in a 3-2 loss to Al-Hilal last week, Al-Khaleej lost 1-0 to Al-Fateh, with Matias Vargas scoring the decisive goal.
Al-Fateh’s strategy was clear: Moroccan midfielder Sofiane Bendebka would be flanked by Mourad Batna and Vargas in a fluid attacking set-up, allowing him to drift between a second-striker role and deeper midfield positions.
The free-flowing forwards enabled Al-Fateh to take control of the final third, with Batna cutting in from the right flank proving to be a dangerous asset in Al-Fateh’s arsenal.
That combination paid dividends in the 41st minute, when Batna delivered a diagonal ball across the pitch to find Vargas, who calmly chipped the ball over Anthony Moris to open the scoring.
It marked the Argentinian’s fourth goal in three matches, with his recent form directly contributing six points — more than half of Al-Fateh’s total this season.
Al-Khaleej were unable to replicate the same intensity shown against Al-Hilal, despite the introduction of club top scorer Joshua King after the break and Pedro Rebocho’s marauding role down the left.
Their clearest opportunity came in the 68th minute, when Rebocho squared the ball to Giorgos Masouras only for his effort to hit the post.
Al-Fateh then adopted a more cautious approach, looking to exploit Al-Khaleej on the counter. They nearly doubled their lead in the 88th minute when Vargas teed up Bendebka, but the midfielder’s powerful backheel crashed against the woodwork.
The defeat marks a slowdown for Al-Khaleej after an encouraging start to the campaign, with this being their third consecutive loss, now leaving them on just 14 points from 11 matches.
Elsewhere, Al-Hazem travelled to the capital to face Al-Riyadh, securing a 2-1 victory thanks to goals from Nawaf Al-Habashi and Omar Al-Somah.
The Syrian striker netted his 157th Saudi Pro League goal, extending his lead over Abderazzak Hamedallah at the top of the all-time scoring charts and helping Al-Hazem move further clear of the relegation zone.
In Qassim, third-placed Al-Taawoun edged bottom side Al-Najma in a tightly contested encounter. A late strike from Roger Martinez in the 85th minute sealed a 1-0 win, Al-Taawoun’s ninth of the season, keeping them firmly in the title race.
Pericles Chamusca’s side have exceeded expectations with their stellar start to the season. The Wolves move into second with 28 points, two ahead of Al-Hilal in third and two behind league leaders Al-Nassr, with both sides still holding a game in hand.
It marks the best start to a Saudi Pro League season in Al-Taawoun’s history, a run that continues to surprise in a league filled with established stars.
Matchday 12 on Tuesday starts with Al-Ahli vs. Al-Fayha, followed by Al-Ettifaq vs. Al-Nassr and Al-Okhdood vs. Damac later in the evening.
