A court has rejected a lawsuit brought by Real Madrid and Athletic Club, contesting the legality of La Liga’s CVC investment deal.
The “Boost LaLiga” initiative, introduced in December 2021, saw LaLiga and its clubs receive nearly €2 billion ($2.17 billion) from the private equity firm CVC in exchange for an 8.2% stake in the league’s broadcasting and sponsorship rights income over the next 50 years.
Initially, 37 of Spain’s 42 first- and second-division clubs voted in favour of the agreement. However, Madrid, Barcelona, and Athletic objected to the plan and were subsequently excluded from its provisions.
They subsequently opted to sue La Liga with the backing of the Spanish Football Federation (RFEF), alleging that the agreement was illegal and encroached upon clubs’ rights. However, Barcelona and the RFEF later withdrew from the case.
In response to the court’s ruling, La Liga issued a statement on Tuesday confirming the dismissal of the lawsuit filed by Athletic Club and Real Madrid CF against the league.
“The ruling confirms the legality of the agreement with CVC, stating that it complies with the legal and statutory frameworks in force.
Furthermore, it stresses that neither LaLiga’s statutes nor the applicable regulations for the management and administration of the audiovisual and economic rights of sports organisations were violated.
This implies that the operation was carried out in compliance with the powers and procedures established by law and La Liga’s statutes.
“The ruling also concludes that the transaction with CVC does not infringe on the rights of the participating LaLiga clubs, arguing that the agreements reached ‘were made in a manner that respects the rights and obligations of the clubs, without imposing unfair conditions on them or significantly altering their participation and rights within the competition.’
“It also recognises LaLiga’s autonomy to manage and administer its commercial and audiovisual rights, as long as this is done within the existing legal framework. This includes the ability to carry out financial and commercial operations that are considered beneficial to its members collectively while always respecting the applicable laws and regulations, as is the case with Boost LaLiga.”
The agreement with CVC was initially revealed in August 2021 and subsequently ratified by the league’s general assembly four months later. Of the total €1.994 billion, the majority was designated for investment in infrastructure, technology, and international expansion. Fifteen percent was allocated for transfers, while another fifteen percent was earmarked for debt reduction.
Three-quarters of this amount have already been received, with the remaining portion expected to be received 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 package, which they said offered better value for money.
LaLiga and Real Madrid have regularly clashed over the league’s management of its TV rights in recent years, with the club bringing frequent legal actions against the organisation.
In his speech to the club’s AGM in November 2023, president Florentino Perez accused LaLiga 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.”