By Fernando Kallas

MADRID (Reuters] – LaLiga has been sued by Real Madrid and Barcelona over a 1.994 million euro deal in private equity that was made last week between administrators of Spanish soccer elite.

Only five out of 42 clubs that made it to the top 2 divisions have signed up for the investment of 1.994 billion euros ($2.24 trillion) from CVC Capital Partners. This was the first European venture of its type.

There were four clubs that opted out of the competition, which included three from the top flight, and one who abstained.

Real Madrid, Barcelona, and Athletic Bilbao declared that the deal caused irreparable harm to Spain’s football industry and violated the LaLiga statutes. They also published a statement declaring legal action.

CVC is buying 8.2% of “LaLiga Boost”, a deal that gives them broadcasting rights and sponsorship rights for fifty years.

Clubs are required to allocate 70% of their funds to investments in infrastructure or modernization projects. You can sign up to 15 players. The remaining 15% may be used to reduce your debt.

LaLiga confirmed that the agreement was legal.

It stated that Real Madrid CF’s decision was a predictable reaction given its history of opposition to strategic initiatives and appeals against them.

Last week’s CVC agreement was at serious risk of falling apart when Barcelona and Real Madrid presented an alternative proposal. JPMorgan (NYSE ) and Bank of America (NYSE ) would jointly lend 2 Billion euros to HSBC in exchange for a fixed monthly payment of 115 M euros for 25 years. This document was seen by Reuters.

Real Madrid and Barcelona also played a role in the failure of a plan to create a European Super League.

($1 = 0.8884 euros)