It’s time to explain La Liga’s decision to accept a new income injection deal with the CVC investment fund. What does it entail?
La Liga president Javier Tebas just made a fundamental decision in order to save the tournament and Spanish football. In recent years, the competition has been displaced by the Premier League and the Bundesliga due to clear economic issues. Many of the major clubs in Spain have found it impossible to compete on a financial level with state-owned clubs such as PSG or Manchester City.
This even pushed the three major clubs in the country to initially agree on creating the European Super League. But the effort led by Florentino Perez didn’t work and it only pissed off UEFA. President Javier Tebas started looking at options to build the trust back between La Liga and the biggest clubs. He appears to have finally found the perfect way to do that through a major investment fund. The announcement was made earlier today and we’ll give you more details about it.
La Liga gets €2.7 billion injections for clubs.
After the CVC Investment Fund made a thorough review of La Liga’s net-worth in the stock market. They valued it at a total €24,25 billion and decided to purchase 10% of the entire institution. This means they will pay €2,7 billion in liquid money that will go mostly to all the football clubs in the country. It has been established that FC Barcelona will get €270 million and Real Madrid is getting €261 million. That should be enough to help both clubs improve their economy and pay previous debts.
La Liga made the announcement through their official website: “LaLiga announces a strategic agreement called “Boost LaLiga” with the leading global investment fund CVC which will see a cash injection of 2.7 billion euros into the competition and its clubs. This ambitious investment plan, approved unanimously today by the league’s Executive Committee (Comisión Delegada), will provide LaLiga and the Clubs with all the necessary resources to fulfil its transformation strategy to become a leading global player in the digital entertainment market, while at the same time bolstering the competition and transforming the fan experience.”
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