Madrid vs Barcelona Tickets: Real Madrid and Barcelona try to frustrate CVC's €2bn La Liga deal

Real Madrid and Barcelona made a belated offer to prevent the private equity group CVC from injecting 2 billion euros into Spanish football because the counter-offer would have an economic advantage. The El Clasico fans can buy El Clasico Tickets from our website.

The two most successful clubs in Spain and Athletic Bilbao have written to the heads of 39 other Spanish first and second division football teams, asking them to reject the CVC deal and support their alternatives.

Real Madrid and Barcelona made a belated offer to prevent the private equity group CVC
Real Madrid and Barcelona made a belated offer to prevent the private equity group CVC

Ahead of the main vote on the Luxembourg-based takeover of the company, the move put pressure on the rebel club La Liga, which controls the two divisions. This intervention marks the latest conflict between La Liga and its two major clubs, who are still committed to the creation of a separate Super League with elite teams across Europe.

It also highlights the different visions of Spanish football as it tries to recover from the financial disaster caused by the pandemic and compete with the English Premier League, which has the highest income in Europe.

In response, La Liga called this alternative financing “hypothetical” and labeled it “a preliminary proposal without a strict minimum requirement”.

The Spanish League also reiterated that the CVC transaction surpassed the need to secure financing for the club, pointing to the private equity firm’s history in sports investment and revenue growth in the industry.

Under the new proposal, a special instrument will be created to raise 2 billion euros in debt within 25 years at a cost of 2.5% to 3% per year.

SPV will divide the proceeds among the clubs and the income of the participating teams will cover their interest and amortized costs. The plan does not imply giving up ownership of the alliance or its assets.

Real Madrid and Barcelona argued with the topic “Sustainable projects” that the costs will be lower than the CVC alternative and the club could save more than 12 billion euros.

People familiar with the matter said Bank of America, JPMorgan Chase, and HSBC are working with the three clubs on the funds. The El Clasico fans can buy Madrid vs Barcelona Tickets from our website.

Real Madrid and Barcelona argued with the topic of Sustainable projects that the costs will be lower than the CVC
Real Madrid and Barcelona argued with the topic of sustainable projects that the costs will be lower than the CVC

The alternative proposal came the day after the La Liga executive committee approved its support for the CVC transaction (dubbed Project Boost) and then formally presented the deal to other alliance members for approval on Dec. 10.

According to Project Boost’s valuation of La Liga at around €24 billion, CVC will provide €2 billion in loans to the club at zero interest.

Both Real Madrid and Barcelona have expressed concerns about the structure and economics of the transaction. Under the transaction, CVC will receive a portion of the league’s broadcast revenues for the next 50 years.

Opposition to the CVC deal forced La Liga to change the original proposal and exclude the three clubs from the deal. Real Madrid and Barcelona have clashed repeatedly over La Liga. Both were among 12 European clubs that attempted to create a European Premier League in April but were gunned down by fans, politicians, and existing football authorities. La Liga president Javier Tebas was against the Super League and warned that the concept has not been seen.

He also chaired the implementation of the Spanish League’s financial regulations, which led to Barcelona allowing star player Lionel Messi to move to Paris Saint-Germain. La Liga accused Real Madrid of putting its own interests above Spanish football.

According to data from consultancy Deloitte, La Liga clubs’ revenues fell 8% to €3.1 billion in the 2019-20 season, lagging behind the Bundesliga’s €3.2 billion. Both are dwarfed by the Premier League, which has a total turnover of 5.1 billion euros.

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