CVC Injects Fresh €482m To Boost LaLiga

LaLiga has received its third payment worth €482m ($526m) from private equity firm CVC Capital Partners in line with an agreement signed between the two parties in 2021.

LaLiga has now received a total of €1.447bn through LaLiga Impulso, the venture set up by the league and CVC. The final instalment of investment from CVC, which will be delivered before the end of the 2023-24 season, will complete the €1.929bn payment established in the signed agreement.

CVC acquired an 8.2-per-cent stake in LaLiga’s new commercial rights unit, guaranteeing the private equity firm a slice of LaLiga revenues for the next 50 years. In turn, CVC has been providing cash injections to LaLiga, which distributes the funds among clubs.

Following the latest cash injection, LaLiga said that LaLiga Impulso is making progress in meeting the projected objectives both in terms of the investment schedule set out at the beginning of the agreement and in the ultimate execution of these objectives.

The CVC funds received by the clubs are limited in nature and can only be spent on several pre-determined areas. Seventy per cent must be spent on investments for the growth of the club, while there is also an option to “optimise the financial structure” with up to 15 per cent of the funds. Clubs are also limited to spending a maximum of 15 per cent of the funds on transfers.

Several clubs have used the funds to upgrade their stadiums, including Villarreal, which has carried out a complete remodelling of Estadio de la Cerámica. Real Sociedad has also redeveloped the Reale Arena, while Real Betis and SD Eibar have developed new sporting complexes.

Real Madrid, Barcelona and Athletic Club were among the teams that voted against the initial deal with CVC and therefore do not receive any of the funding through LaLiga Impulso.