SUMMARY
- La Liga won the CVC case against the Spanish clubs Real Madrid and Athletic.
- La Liga clubs are required to allocate 70% of their funds for infrastructure development and 30% for transfer deals under the La Liga agreement.
The Spanish top-tier league La Liga is named alongside one of the top leagues in Europe. The competition includes renowned clubs like Real Madrid, FC Barcelona, and Atletico de Madrid. La Liga dominates a major portion of the club soccer market when it comes to financial numbers in Europe’s top division.
As per the reports, the Spanish court has dismissed any legal action to be taken against La Liga regarding the CVC case. It was pertained upon it by clubs like Real Madrid and Athletic Bilbao. The deal between the Spanish league and CVC stands at a monetary figure of around $2.1 billion. Also, the agreement would have witnessed several other obligations.
🚨 La Liga has won the CVC case against Real Madrid and Athletic. @marca pic.twitter.com/FeDpnq8Wmt
— Madrid Xtra (@MadridXtra) February 27, 2024
Under the agreement, the La Liga clubs would be bound to allocate their funds in a termed manner. The clubs would be obliged to use 70 percent of their funds for infrastructural developments. The remaining 30 percent would be split between transfer deals and debt proceeds. However, not every club was in favor of the deal between the league and CVC.
Real Madrid, Barcelona, and Athletic Bilbao were against La Liga’s CVC deal
The Spanish giants Real Madrid, their fierce rivals FC Barcelona, and Athletic Bilbao were the clubs that were not in favor of La Liga’s decision to establish a CVC deal. As per the reports, the hierarchy of these clubs from Spain thought that the proposal would cause ‘irreparable damage’ to them in terms of operations conducted.
Athletic Club and Real Madrid will face La Liga in court over the CVC deal. The two clubs are the only ones left against the CVC agreement.👨⚖️🇪🇸
The judge will hear out the parties today in court. ⚖️
[@ElPeriodico_Esp] pic.twitter.com/GUyQF2iFfA
— LaLigaExtra (@LaLigaExtra) February 1, 2024
However, in June 2023 Barcelona opted out of the lawsuit. They pursued it alongside Real Madrid and Athletic Bilbao against La Liga regarding the CVC initiative. After its withdrawal, Los Blancos and Athletic Bilbao were the only remaining clubs standing against the league’s CVC predictment.
How La Liga’s CVC deal is projected?
The CVC capital partners’ agreement with La Liga is being termed as ‘La Liga Boost’. If pursued ahead, the procedure will get CVC a stake of about 8.2 percent in an unspecified company. The same company would be able to generate revenue proceeds from sponsorship and viewership designations.
Reports term that a total of 37 clubs were in favor of the La Liga-CVC tie-up. With the Spanish court ruling the CVC case in favor of the Spanish league, it would be interesting to find out how things progress from now on. Certainly, Real Madrid and Athletic Bilbao would have to make the required adjustments even if they wouldn’t want to do so in the long run.