Sunday, March 26, 2023

Real Madrid sue La Liga, CVC over $3.2 billion deal – Reports

Real Madrid are not happy with the $3.2 billion deal that La Liga struck with private equity firm CVC. The Spanish giants have decided to open legal proceedings against both institutions over the agreement.

The club released an official statement on its website announcing the decision. The statement reads:

“The Board of Directors of Real Madrid CF, meeting today at 11:00 a.m., has unanimously agreed to carry out both civil and criminal legal actions against the president of La Liga, Mr. Javier Tebas Medrano, against Mr. Javier de Jaime Guijarro, responsible for the CVC Fund and against the CVC Capital Partners SICAV-FIS Fund itself.

”Likewise, the Board of Directors has also decided to carry out legal actions of all kinds that are deemed appropriate to annul and nullify the possible agreements adopted by the LaLiga Assembly, to be held on August 12, 2021, regarding the agreement between LaLiga and the CVC Fund.”

Just a few days ago, it was reported that La Liga has reached an agreement with CVC to inject $3.2 billion into the league.

It was mentioned that the funds will be shared between clubs in the Spanish top flight to tackle their economic challenges in the wake of the COVID-19 pandemic.

However, Real Madrid and Barcelona opposed the move because it includes an agreement to hand over to CVC 10 percent of La Liga’s revenue and 10 percent stake in most of its business.

Both clubs have come out publicly to clarify their stance.

Barcelona President Joan Laporta has also spoken against the CVC deal
Barcelona President Joan Laporta has also spoken against the CVC deal

Real Madrid decision’s influenced by Super League involvement

Another reason why Real Madrid and Barcelona are opposed to the CVC deal has been traced to their commitment to the proposed European Super League movement.

Sources have claimed that accepting the cash injection would mean that they’ll drop their interest in forming the breakway competition.

The two clubs, alongside Italian giants Juventus, continue to fight for the establishment of the Super League despite other founding members having pulled out of the movement.

As it stands, the saga is set to drag on, with the battle promising to get more intense moving forward.

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Edited by Arjun Panchadar


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