Preloader

Spain’s La Liga attracts $3.2 billion investment from CVC

Reading Time: < 1 minute

La Liga, Spain’s top soccer league, has agreed in principle to sell 10% of a newly formed company housing most of its business to private equity firm CVC Capital Partners for 2.7 billion euros ($3.2 billion), it said on Wednesday.

The deal values La Liga, host to Real Madrid and Barcelona, at around 24.2 billion euros and, if approved, will fund “structural improvements” while offsetting some of the immediate impact from COVID-19, the league said in a statement.

The cash influx would be particularly welcome to those two clubs which have lately faced unfamiliar constraints on their spending power, but how much of it leaks out into transfer fees and player wages remains to be seen.

La Liga said some 90% of the funds raised will be channeled directly to clubs which must use the cash to finance investment programmes agreed with the league.

via Reuters