Real Madrid and FC Barcelona seek to thwart CVC’s €2bn La Liga deal

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Real Madrid and Barcelona have launched a delayed bid to prevent private equity group CVC from injecting € 2 billion in cash into Spanish football, offering counter offers claiming to be economically superior.

Two of Spain’s most successful clubs, along with Athletic Bilbao, write to the heads of the other 39 teams in Part 1 and Part 2 of Spanish football to reject the CVC contract and support the alternative. I urged you.

The rebel club’s move is putting pressure on Liga, which operates both divisions, prior to a critical vote on a deal with a Luxembourg-based acquisition company.

This intervention shows the latest clash between LaLiga and its two biggest clubs. These clubs continue to work on launching a withdrawal super league with elite teams across Europe.

It also emphasizes the contrasting vision of Spanish football as it seeks to recover from the financial devastation caused by the pandemic and compete with the English Premier League, Europe’s biggest profit.

Under the new proposal, a special purpose vehicle will be created that will raise € 2 billion in debt over 25 years at a cost of 2.5-3% per year.

The SPV distributes the revenue to the club and the revenue of the participating teams meets its interest and amortization. This plan does not include relinquishing ownership of the league or its assets.

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Real and Barcelona, ​​entitled “Project Sustainable,” claim that they are cheaper than the CVC alternative and could save more than € 12 billion in club costs.

Bank of America, JP Morgan, and HSBC are working with three clubs on financing, according to people with knowledge of this issue.

The alternative is the day after Liga’s executive committee approves support for a CVC contract known as Project Boost, before officially presenting an agreement to other members of the league for approval on December 10. I will.

Under a project boost that rates Liga at around € 24 billion, CVC will provide clubs with € 2 billion to be lent out without interest.

Both Real and Barcelona have expressed concern about the structure and economics of the deal that CVCs will earn a portion of the league’s broadcast revenue over the next 50 years.

Opposition to the CVC contract has already forced Liga to change the original proposal, leaving three clubs out of agreement.

Real and Barcelona have repeatedly clashed with LaLiga. Both were one of the 12 European clubs that they sought to establish. European super league In April, it was only shot down by fans, politicians and existing football authorities.

President Javier Tebas of LaLiga opposed the Super League and warned that the concept had not yet been put off. He also presided over the enforcement of financial regulations in the Spanish League, and Barcelona allowed star player Lionel Messi to leave for Paris Saint-Germain.

LaLiga has accused Real of prioritizing their interests over Spanish football. Someone close to LaLiga warned that funding proposals could be distracting from Real’s continued support for the Super League.

According to consultancy Deloitte, Riga Club revenues fell 8% in the 2019-20 season to € 3.1 billion, lagging behind Germany’s Bundesliga of € 3.2 billion. Both were dwarfed by the Premier League, with total revenues of € 5.1 billion.

Real Madrid and FC Barcelona seek to thwart CVC’s €2bn La Liga deal Source link Real Madrid and FC Barcelona seek to thwart CVC’s €2bn La Liga deal

The post Real Madrid and FC Barcelona seek to thwart CVC’s €2bn La Liga deal appeared first on California News Times.

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