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Real Madrid, Barcelona propose alternative to CVC investment in LaLiga -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Soccer Football 12 of Europe’s best football teams launch a Super League breakaway – Madrid (Spain) – April 21, 2021. A shop window allows you to see Barcelona, Real Madrid, and Atletico Madrid merchandise. REUTERS/Susana Vera

MADRID, (Reuters) – Top Spanish soccer clubs Real Madrid and Barcelona proposed a bank credit of 2 billion euros ($2.26 billion), to help finance Spain’s premier league. This was in an attempt to stall a private equity fund CVC’s approved cash injection.

CVC deals are due for final approval Dec. 10, and were approved in the first round by 38 clubs of LaLiga.

JPMorgan (NYSE ) would lend 2Billion euros to Spain’s top two clubs, together with the smaller Athletic Bilbao. In exchange, HSBC, Bank of America (NYSE ), and JPMorgan(NYSE:), they will each pay a fixed monthly payment of 115M euros per year for 25-years, a document seen in Reuters confirmed a Financial Times report.

CVC deals would allow the fund to receive 11% from league television rights for the next 50 year in return for a single payment of €2.7 billion.

Real Madrid, Barcelona, and Athletic Bilbao decided to opt out of the deal, claiming that CVC was too generous with their terms. Real Oviedo Second Division also rejected the agreement.

LaLiga management responded to the alternative proposal by saying that the CVC deal did not only finance the league, but was also intended to make it more competitive and improve its business operations.

($1 = 0.8863 euros)

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