With Messi’s departure, Barcelona rejected a private equity investment in La Liga

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FC Barcelona update

Barcelona accused the private equity firm CVC Capital Partners of paying less to invest in Spanish football, and rejected a 2.7 billion euro deal with the country’s Premier League the day after the club’s announcement. Lionel Messi is leaving.

Joan Laporta, who was elected Barcelona’s chairman in March, said on Friday that the club is ready to fight Deals between La Liga and CVCHe added that the only way to keep Messi is to accept the deal, but it is not in Barcelona’s best interest.

He also revealed that the club expects last season’s loss to soar to nearly 500 million euros, more than twice the predicted figure.

The CVC transaction valued La Liga at more than 24 billion euros, but it still needs to be approved by the club. It proposes to create a new entity — with a minority stake in CVC — to manage the alliance’s broadcasting, sponsorship and digital rights.

It also includes a revenue sharing component, which will enable CVC to obtain more than 10% of the annual broadcast rights of La Liga.

Real Madrid has come out to oppose it.

La Liga chairman Javier Tebas said in a tweet to Laporta when asked by the media on Friday that the deal will increase the value of the broadcast rights of all clubs and allow them to borrow from this income. This situation is becoming more and more common. Practice European football.

Barcelona Chairman Joan Laporta said the club is ready to fight the CVC-La Liga deal © Albert Gea/Reuters

Laporta fired back, calling the deal “bad” and accusing CVC of providing one-third of the value Barcelona has given to La Liga. He also warned that Barcelona “can defend itself” as the club prepares to vote on the deal.

The opposition from the two major Spanish clubs means that CVC will have to choose between making the deal sweet to win them, trying to push the deal without their support, or walking away. CVC does not need the unanimous support of the club, but if it promotes transactions without the greatest support, managing investments may be difficult in the long run.

Barcelona and Real Madrid are the two most successful football teams in Europe, but they found themselves at odds with their league in terms of the best strategy to recover from the financial losses caused by the pandemic. Both clubs are actively participating in the separation plan of the European Super League.

For more than a year, CVC has been working hard to enter Europe’s top football league. It was close to reaching a 1.6 billion euro agreement with Italian Serie A, but the deal was shelved after top clubs including Juventus and Inter Milan blocked it.

Germany’s top football clubs also voted to abandon negotiations with private equity firms on the sale of shares in Bundesliga international media rights.

Additional reporting by Daniel Dombey in Madrid

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