Breaking News

Real Madrid takes legal action against La Liga chief, equity firm

Real Madrid have announced legal action against La Liga president Javier Tebas and private equity firm CVC Capital Partners.

La Liga last week secured a deal worth 2.7 billion euros (3.1 billion dollars) with CVC to boost Spanish clubs amid the coronavirus pandemic, with 90 per cent of the investment earmarked for their use.

However, CVC will have a 10 per cent stake in a new business, which is being formed with a focus on the league’s commercial ventures.

It insisted the agreement does not cover league management or broadcast rights, but Real Madrid and rivals FC Barcelona both announced their opposition to the deal.

They claimed audio-visual rights would be affected and they had not been properly consulted.

Real Madrid are now going a step further, with a rumoured legal challenge confirmed in a club statement on Tuesday.

“The board of directors of Real Madrid…has unanimously agreed to carry out both civil and criminal legal actions against the president of La Liga, Javier Tebas Medrano, against Javier de Jaime Guijarro, responsible for the CVC fund, and against the CVC Capital Partners fund itself,” the statement read.

“Likewise, the board of directors has also decided to carry out the legal actions of all kinds that are understood to be appropriate to annul and cancel the possible agreements adopted by the assembly of La Liga, to be held on Thursday, regarding the agreement between La Liga and the CVC fund.”

Tebas was quick to respond on Twitter, taking aim at Real Madrid president Florentino Perez.

“The threatening methods that FP [Perez] has been using in private for years is now being transferred to the public,” he wrote.

“Clubs and institutions have been supporting their threats for years.

“Since 2015 against the centralised sale, the constant challenges of agreements, the Super League…

“Real Madrid deserves more.”

Playing behind closed doors last season, Real Madrid have been heavily impacted by the pandemic but have worked to limit the damage.

In their accounts last month, Real Madrid revealed they lost “close to 300 million euros” in revenue, although Los Blancos reported a post-tax profit of 874,000 euros for 2020/2021.

With “intense spending saving measures in all areas”, Real Madrid did not make a single signing last term while moving a number of high earners off their books.

This year, they recruited David Alaba on a free transfer but saw Sergio Ramos depart and have agreed a deal to sell Raphael Varane to Manchester United.

Real Madrid and FC Barcelona have also continued to pursue a lucrative European Super League.

They are two of only three clubs – along with Juventus – still committed to the project which collapsed earlier this year.

About MediaWaves Editor

Check Also

Mikel Obi Finally Reveals Why He Snubbed Manchester United for Chelsea.

Former Super Eagles captain, John Mikel Obi, has finally revealed why he snubbed Manchester United …

Leave a Reply

Your email address will not be published. Required fields are marked *