Hedge fund giant pumps €2bn into Spanish soccer to keep ball rolling

A total of 37 clubs have voted in favour of the 'LaLiga Boost' deal that buys private equity fund CVC an 8.2% stake in a new company that will get revenues from LaLiga broadcasting and sponsorship rights

Spain's LaLiga football league has agreed a near €2bn investment deal with private equity giant CVC Capital Partners, but heavyweight clubs like Barcelona and Real Madrid have refused to sign up to the deal.

Spain's top soccer clubs have approved a near €2bn investment from private equity fund CVC Capital Partners in the first deal of its kind in Europe, though four clubs – including Barcelona and Real Madrid – opted out.

A total of 37 clubs have voted in favour of the "LaLiga Boost" deal that buys CVC an 8.2% stake in a new company that will get revenues from LaLiga broadcasting and sponsorship rights.

Real Madrid, Barcelona, Athletic Bilbao and Ibiza voted against the deal, according to one source. There was no immediate official statement from those clubs or details on their next moves.

At least 32 of the 42 teams from the Spanish first and second divisions needed to back the plan. On top of the four objections, one other club abstained from voting, the source said, without naming the club. LaLiga had said the deal would be worth €2.7bn when it was first unveiled in August.

The lower €1.99bn figure reflected the opt-outs and will be shared among the participating clubs and paid over a three-year period, the league said.

It marks the first investment agreement from a private equity firm in a major European League.

"This is a new milestone in the history of LaLiga and its clubs," LaLiga president Javier Tebas said. "It allows us to continue our transformation towards a global digital entertainment company, improving the competition and enhancing the fan experience."

Goldman Sachs will contribute with a portion of the funds that CVC will invest in the Spanish football league and recover over 50 years, sources from LaLiga and the fund have said.

The clubs are committed to allocate 70% of the funds to investments linked to new infrastructure and modernisation projects. Up to 15% can be used to sign players, with the remaining 15% for reducing debt.

• Reuters