Real Madrid are going to sue La Liga, after their plans for project ‘Boost La Liga’ were revealed.
The scheme involved an injection of £2.3 billion into all the first division clubs in Spain to compensate for the massive financial losses due to the pandemic. Madrid believe that the league board are committing a misappropriation of funds by essentially selling what is not theirs.
Among the rights sold by La Liga to bring in the cash inflow include the television and marketing rights. However, the clubs hold the rights to those aspects and Barcelona, Osasuna and Athletic Bilbao are also opposing the decision made by the league.
CVC used to own Formula One and recently bought a stake in rugby’s Six Nations tournament. As part of the agreement with the Spanish league, the private equity firm would have a share of about 10% of the league’s revenues and a stake of 10% in a new commercial entity that values the league at £20.5billion.
The league said the deal will allow it to ‘become a leading global player in the digital entertainment market’ while bolstering the competition and providing more resources to clubs.
The CVC sponsorship deal brings about the latest chapter in the feud between Florentino Perez, president of Real Madrid, and Javier Tebas, the president of La Liga. The two have had 51 legal battles in recent years, and are also opposed in their views regarding the European Super League.
