UPDATE: Spanish soccer joins lawsuit against $2.3bn CVC Capital, La Liga deal

A blockbuster legal battle between private equity and soccer clubs is escalating in Spain.

The governing body of soccer in Spain, the Real Federación Española de Fútbol (RFEF), has joined a lawsuit led by soccer clubs Barcelona, Real Madrid and Athletic Bilbao against a proposed $2.3bn partnership between La Liga, Spain’s topflight soccer league, and CVC Capital Partners.

After speaking out against the deal for months, RFEF made official its opposition by joining the suit, saying in a statement that “incalculable damage is being caused to Spanish football” by the agreement and that a partnership between the two parties would “increase inequality.”

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CVC’s deal with La Liga came after the PE firm’s multiple failed attempts to acquire a stake in a top European soccer league. In 2020, negotiations fell through for CVC, Advent International and Italian investor FSI to pay €1.7bn for a 10% stake in the media rights business of Serie A, Italy’s premier soccer league.

The firm was also reported to be seeking a stake in Bundesliga before the German soccer league pulled the plug on the sales process last May.

CVC did not immediately respond to a request for comment.

Last year, CVC and La Liga inked the €2bn deal to establish a new company that would receive revenue from the league’s broadcasting and sponsorship rights for the next 50 years. CVC would retain an 8.2% stake in the company as part of the deal.

Barcelona, Real Madrid and Athletic Bilbao announced their lawsuit against CVC and La Liga following the deal’s approval by 37 out of 42 La Liga clubs in December.

CVC holds stakes in a variety of other European sports, from Formula One racing to multiple rugby union investments.

Source: Pitchbook

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