MADRID, March 7 — A Madrid court has rejected a request by Real Madrid, Barcelona and Athletic Bilbao for a temporary injunction against a La Liga deal with private equity group CVC to raise €1.994 billion (RM9.1 billion), according to a court document seen by Reuters on Monday.
The agreement, dubbed the “La Liga Boost”, gives CVC Capital Partners an 8.2 per cent stake in a new company that will receive broadcasting revenues and sponsorship rights for 50 years.
Faced with the end of a cycle of rapid growth in the value of TV rights — and pummelled by pandemic restrictions on crowds — football leagues and clubs, not just in Spain, are scrambling to find alternative sources of revenue.
All but four of the 42 clubs in Spain’s top two divisions signed up to the investment from CVC, the first of its kind in Europe, in December.
The three top flight clubs filed the civil lawsuit to seek the suspension of the agreement during their legal action against La Liga to try to strike down the deal. The fourth club, Ibiza, from the second division, is not party to the action.
The three clubs argued that a temporary injunction was necessary to prevent any transactions from the agreements.
However the Madrid Civil Court rejected their application, saying a suspension sought would stop processes already initiated or executed, and would impose the criteria of a minority against the choice made by the majority.
The clubs did not immediately respond to a request for comment. La Liga said in a statement it was a key deal for all Spanish clubs.
La Liga executive director Oscar Mayo had told Reuters in February the league was “confident in the legality of the deal”, adding that first instalment of €400 million was delivered in January to the clubs and in July CVC will have paid the first €1 billion. — Reuters
