By Paul Nicholson
December 9 – Two days before LaLiga’s clubs are scheduled to vote on Project Impulso which will see CVC inject almost 2 billion euros into the league, the Spanish FA (RFEF) and the president Luis Rubiales issued a statement opposing the fundraising and questioning its legitimacy under Spanish law.
“As we have indicated since last August, we reiterate our deepest opposition to the La Liga Impulso Project. It is presented in terms that are incompatible with our legal system and we are confident that the Spanish authorities will not allow its implementation,” the statement said.
The RFEF considers that the transfer of shares in the league to a private equity firm could affect the sporting integrity of the league and could lead to decisions that are not in the interest of football as a whole. Spanish clubs.
“From the RFEF, we have an obligation to ensure that the governing regime of Spanish sports law is maintained. The statement said the said regime is incompatible with management participation and economic participation in La Liga without a third party, and much less by a private venture fund,” the statement said. father said.
The RFEF also argues that by centralizing finance to clubs in the top two leagues, clubs in the lower leagues will be left behind even further, essentially creating a system closed leagues are demarcated by financial unfairness. A financial boost to clubs receiving new funding effectively insulates them from the rest by giving them an unfair financial advantage.
The statement said: “LaLiga can only belong to and can only be managed by clubs playing in the First and Second Divisions, without prejudice to the legitimate expectations of lower-tier clubs. than.
We therefore have an obligation to provide clubs that do not wish to link the competition destination with venture capital funds, from the RFEF, to help build solutions compatible with the competition. our legal system and uphold the traditional values of Spanish football. ”
Barcelona, Real Madrid and Athletic Club have all criticized the Impulso Project and said they will not participate, believing there are other financial alternatives.
They have proposed a loan of 2 billion euros from JP Morgan, Bank of America and HSBC, who will together lend the clubs 2.5-3% interest over 25 years. They say this is better than giving up LaLiga’s percentage of commercial rights.
Clubs that have agreed to participate in the Impluso Project will have financial control over the money they receive, must allocate 70% of the funds to infrastructure development and technological innovation. Only 15% can be used to buy players and 15% to restructure financial debt.
LaLiga said 90% of the capital invested by CVC will go to the clubs, saying that the new money “not only protects the economic viability of all Spanish football clubs, but also opens them up.” presents a new present and future for them by allowing them to advance their growth and transformation over a decade. “
Javier Tebas, president of LaLiga, said: “We believe Boost LaLiga is the answer to the challenges we face in the medium to long term. This is a strategic agreement that will give our clubs greater capacity, will transform their management model and boost the appeal of our competition. That’s the push we need to make LaLiga a global digital entertainment company with the world’s most exciting football tournament.”
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http://www.insideworldfootball.com/2021/12/09/rfef-questions-legality-cvcs-e2bn-stake-laliga-clubs-prepare-vote/ RFEF questions legitimacy of CVC’s €2 billion stake in LaLiga as clubs prepare to vote