Real Madrid Sues La Liga
Legendary football clubs Real Madrid and Barcelona are now embroiled in a legal battle with the La Liga president over a financial deal with CVC.
La Liga is facing the wrath of Spain’s Royal Club.
After the announcement of a €2.7 billion ($3.2 billion) deal between the Spanish La Liga and CVC Capital Partners, Real Madrid and other Spanish clubs are not taking the matter lightly.
Real Madrid has stated that it will launch a civil and criminal lawsuit against Javier Tebas, president of La Liga, and the chief of the private equity CVC, Javier de Jaime Guijarro.
Furthermore, the club will pursue legal action to block the deal as it gives the private equity firm a 10% share in the league’s future television and broadcasting rights.
Barcelona joined Madrid’s side by supporting its decisions and describing the deal as “mortgaging the club’s rights over the next half-century,” vowing to fully reject it.
The deal came amidst growing financial distress as sports clubs around the globe have felt the powerful setbacks of the pandemic, notably with disrupted competitions and shut-out stadiums.
Spain’s football clubs have now entered a new legal battle with La Liga, despite the deal’s outcome securing hefty revenues and funds which Barcelona could have used to keep its previous superstar Lionel Messi amongst its ranks.