December 3 – At the last minute, Real Madrid, Barcelona and Athletic Bilbao have presented an alternative solution to LaLiga’s planned $2.3 billion investment from CVC.
The three clubs are proposing a €2 billion loan from JP Morgan, Bank of America and HSBC, who would jointly lend clubs the at a 2.5-3% interest rate over 25 years. They say this is better than having to give up an ownership percentage of LaLiga’s commercial rights.
JP Morgan was the financier of choice for the doomed European Super League.
In August, the La Liga-CVC agreement was approved by the clubs, but a final vote is due on December 10. In the deal, CVC would invest $2.3 billion, but in return receive 11% of the league’s income from TV rights.
La Liga said that the clubs will benefit from the cash injection, with about 90% of the funds from CVC’s investment distributed to them, but spending the money would be subject to restrictions: 70% on infrastructure improvements, 15% at maximum on player acquisition and a further 15% to finance debts. FC Barcelona and Real Madrid were the most vocal critics of the deal.
Madrid president Florentino Perez called it “a transaction that made no financial sense for the clubs, but was good for CVC and others involved”. Barcelona also repeatedly condemned the investment.
LaLiga was sceptical of the efficacy of the offer and questioned its motives and timing. “The operation presented in this letter (sent to LaLiga’s clubs) is based on an improvised proposal, elaborated without the minimum rigour required,” said La Liga in a statement.
“It is surprising that the promoters of the Super League, which would have been lethal for national leagues, express concern for a project which the majority of LaLiga clubs have approved, and won’t affect them financially.”
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