Spain’s soccer league has secured €2.7 billion ($4 billion) funding from a private equity firm known for buying into sports bodies.
The competition known as La Liga is hoping to gain the agreement of its clubs for the investment from CVC Capital Partners, which used to own Formula One and has bought a stake in rugby’s Six Nations tournament recently.
In a statement, La Liga said CVC will have a stake of around 10% in a new commercial entity being formed in the deal that values the league at €24.2 billion and have a cut of revenue.
The league maintains it is not a rescue package to help clubs struggling due to the pandemic but it will provide funding that has been denied to them due to stadiums being empty for games.
The investment is part of the league’s attempt to usurp the global dominance of the English Premier League, which is the world’s richest soccer competition.
La Liga envisages the deal accelerating the competition’s development into a digital entertainment company, while not handing CVC control of the management of the competition.
Since 2005, the league has been won by Real Madrid or Barcelona apart from Atletico Madrid’s two successes — the latest in May.
The CVC investment has to be approved later Wednesday by the league’s executive committee before it can be put to a general assembly vote of the clubs.
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