A Spanish court has dismissed legal action by domestic soccer sides Athletic Club and Real Madrid against LaLiga’s €1.9 billion ($2.1 billion) ‘Boost LaLiga’ project.
The Madrid court's ruling did not find anything unlawful in the league's deal, in which 44 Spanish clubs voted to receive cashin return for handing over an 8.2% stake to private equity firm CVC Capital Partners under a 50-year agreement.
Go deeper with GlobalData
The project was launched in 2021 as a strategic partnership with CVC in which the two parties created a new commercial entity to manage the league’s commercial rights.
It marked the first investment agreement by a private equity firm in a major European league, however, Real Madrid and Athletic filed a complaint in January 2022 stating that they believed the agreement would cause irreparable damage to the Spanish soccer sector, and that it violated Spanish sports law and LaLiga's statutes.
The court ruling can be appealed.
See Also:
In a statement today, LaLiga said: “LaLiga welcomes the ruling that once again ratifies the legitimacy of the agreement with CVC, which has the support of 44 signatory clubs.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The agreement has allowed the clubs to plan investments, without public funding, which would otherwise have been unaffordable and will accelerate their growth by 20 years in terms of investment, infrastructure, internationalization, and professionalization, among many other aspects.”
This represents the second court loss in almost a year for Real Madrid and Athletic as the provincial court of Madrid also dismissed the case in March 2023. It is now the fourth time the court has denied attempts by the clubs to bring an injunction against the deal.
Barcelona also initially took legal action in opposition of the deal but eventually dropped out of the lawsuit after it was rejected on multiple occasions.
Under the terms of the Boost LaLiga plan, the funds received by the clubs are limited in nature, and can only be spent on several pre-determined areas.
At least 70% must be spent on investments for the growth of the club, while there is also an option to pay off debts and make transfers (maximum 15% for both areas).
Last June, LaLiga received €482 million from CVC Capital Partners as the third payment under its commercial partnership.
With this installment, LaLiga has now received a total of almost €1.5 billion from CVC. There will be a final installment of investment from the firm before the end of the ongoing 2023-24 season. This will complete the €1.9 billion established in the signed agreement.
