Real Madrid lose case against LaLiga over €2bn CVC deal،
A court has dismissed a lawsuit brought by Real Madrid and Athletic Club, saying LaLiga's CVC investment deal was illegal.
The “Boost LaLiga” project, signed in December 2021, saw LaLiga and its clubs receive nearly 2 billion euros ($2.17 billion) from private equity firm CVC in exchange for a share of 8.2% of the league's revenues from broadcasting and sponsorship rights. for the next 50 years.
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Initially, 37 of Spain's 42 first and second division clubs voted in favor of the deal. Madrid, Barcelona and Athletic led opposition to the project and were subsequently excluded from its terms.
They then chose to sue La Liga – with the support of the Spanish Football Federation (RFEF) – arguing that the deal was illegal and violated the clubs' rights, although Barcelona and the Spanish Football Federation (RFEF) are then withdrawn from the case.
“La Liga took note today of the judgment of Court of First Instance No. 15 which rejected the lawsuit brought by Athletic Club and Real Madrid CF against La Liga,” La Liga said in a statement on Tuesday.
“The judgment confirms the legality of the agreement with CVC, specifying that it complies with the legal and regulatory frameworks in force. Furthermore, it emphasizes that neither the statutes of LaLiga nor the regulations applicable to the management and administration of audiovisual and economic rights of sports organizations were violated, implying that the operation was carried out in compliance with the powers and procedures established by law and the statutes of La Liga.
“The judgment also concludes that the transaction with CVC does not infringe the rights of the participating La Liga clubs, arguing that the agreements reached “were concluded in a manner which respects the rights and obligations of the clubs, without imposing unfair conditions on them or significantly modifying their participation and rights within the competition.
“It also recognizes the autonomy of LaLiga to manage and administer its commercial and audiovisual rights, provided that this is done within the existing legal framework. This includes the ability to carry out financial and commercial operations considered beneficial to its members collectively, while always complying with applicable laws and regulations, as is the case with Boost LaLiga.”
The deal with CVC was first announced in August 2021 and approved by the league's general assembly four months later.
The majority of the €1.994 billion was earmarked for investments in infrastructure, technology and internationalisation, with 15% able to be spent on transfers and a further 15% on debt reduction.
Three-quarters of this sum has now been received, with the remainder due by the end of 2024.
Madrid, Barcelona and Athletic argued that the deal was “an illegal transaction that causes irreparable damage to the Spanish football sector as a whole” and proposed an alternative investment plan, which they said offered a best quality price report.
LaLiga and Real Madrid have regularly clashed in recent years over the league's management of its TV rights, with the club taking frequent legal action against the organization.
In his speech to the club's general assembly in November 2023, president Florentino Pérez accused La Liga of “attacking the club's financial wealth” and said he would “take measures so that Real Madrid and its members , as owners, have the ability to protect our club.” “
