UPDATE 1-Real Madrid says $3.2 bln La Liga deal with CVC "deceitful"

(Adds detail, comment from both parties, recasts lede & headline, changes attribution)

MADRID, Aug 5 (Reuters) – Real Madrid denounced on Thursday a multi-billion dollar investment and revenue-sharing deal between Spain’s top soccer league La Liga and private equity firm CVC, saying the agreement was reached without the football club’s knowledge or consent.

“The negotiation was done without competitive process… giving the CVC fund over 20% annual returns,” Real Madrid said in a statement, adding that the operation’s structure was “deceitful” and would expropriate the clubs of a portion of their audiovisual rights over the next 50 years.

The club considers the deal, under which CVC will invest 2.7 billion euros ($3.2 billion) in La Liga in exchange for 10% of its revenue and a 10% stake in most of its business, to be a misappropriation of assets generated by Real Madrid and will sue La Liga accordingly, Spanish outlet El Independiente reported.

CVC did not respond to a request for comment.

“Legal moves by Real Madrid don’t worry us,” a La Liga spokesman said, noting legal battles between La Liga and Real Madrid were common. “We have been and are at odds over many topics… there are many open cases between La Liga and the club.”

Relations between Madrid and La Liga, which have often been strained, hit new lows earlier this year after the club spearheaded a movement to create a breakaway European Super League with 11 other major teams.

The Spanish football league’s Executive Committee, which includes the bosses of Atletico Madrid and Sevilla but not those of Real Madrid or FC Barcelona, approved the planned CVC deal on Wednesday and it will now be put to a vote by all league members.

The Real Madrid said it would call an assembly of its partners to debate the agreement and discuss the “unprecedented patrimonial losses”.

Source: Read Full Article