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Real Madrid, Barcelona plan legal action as LaLiga clubs vote in favor of €2 billion CVC deal


LaLiga clubs have once again voted in favor of the league’s €2 billion investment deal with CVC despite continued opposition from Real Madrid, Barcelona and Athletic Bilbao, who have said they will take legal action to block the initiative.

The league’s ‘Boost LaLiga’ project will see clubs receive funds to spend on infrastructure and modernization – as well as an increase in transfer spending limits – in exchange for transfer 11% of LaLiga’s revenue from television rights to CVC investment fund for the next 50 years.

The deal was approved on Friday, with 37 of Spain’s 42 first- and second-tier clubs voting in favor. Sources told ESPN that UD Ibiza joined Madrid, Barca and Athletic in voting against, with another unnamed club abstaining. The the opposition of Madrid, Barca and Athletic saw them excluded from the terms of the initiative. While others will receive their first cash flows in the coming weeks, those clubs will not, while retaining all of their television rights income.

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Even so, the trio have continued to fight the deal, exchanging a series of angry open letters with LaLiga president Javier Tebas in recent weeks. Madrid, Barca and Athletic wrote to fellow clubs on December 3 outline an alternative proposal, which they call the “Sustainability Project”.

It said the deal would leave the clubs with 2 billion euros similar to a 25-year joint loan from JP Morgan, Bank of America and HSBC, with interest rates between 2.5 and 3 per cent.

They claim that the proposal is a “long-term, sustainable, reasonable and legal” alternative. 15 times more affordable if CVC’s growth projections are met. In response, LaLiga president Javier Tebas dismissed the offer as “an attempt to break consensus and create uncertainty.”

On Tuesday, the three clubs published another open letter, addressed to the Spanish Football Federation (RFEF) and the Spanish National Sports Council (CSD), asking them to intervene and prevent block what they call a “illegal” and “cheating” initiatives.

The three clubs argued that the majority were pressured to accept the CVC deal due to the financial impact of the coronavirus pandemic and LaLiga’s own strict spending limits, and called for “structural reform of football” Spain.”

The CSD convened a meeting of the parties on Thursday in an attempt to broker a truce, but Madrid, Barca and Athletic refused to attend when it became clear that the organization considered itself a party. Intermediaries have no power to block the deal.

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