• CVC plans to invest around € 2 billion in return for 11% of future LaLiga media rights revenues over the next 50 years
  • Real, Barca and Athletic alternative would see special purpose vehicle raise € 2bn in debt
  • La Liga president Javier Tebas lashes out at counter-offer

Real Madrid, Barcelona and Athletic Bilbao have presented an alternative funding proposal to Spanish football clubs in a last-ditch attempt to thwart La Liga’s multibillion-dollar deal with CVC Capital Partners.

La Liga were set to secure a € 2.7bn ($ 3.1bn) investment from the private equity firm after its offer was approved in August by 38 of 42 clubs from both first Spanish divisions.

However, Los Blancos, Barca and Athletic, along with another unnamed club, voted against the deal, with Los Blancos threatening to take legal action.

It was announced this week that CVC’s investment will now total around € 1.994 billion ($ 2.254 billion), a figure that has been adapted to reflect the participation of 39 clubs. CVC’s proposal will see the Luxembourg company receive 11% of future LaLiga media rights revenues for the next 50 years.

Real, Barca and Athletic were given the option to withdraw from the deal. This would mean a drop in CVC’s revenue share and although opposing clubs would not benefit from the company’s cash injection, the opt-out clause ensures that they will not have to hand over their share of future earnings from the companies. media rights.

However, the three teams appear to have gone further, with the Spanish media El Confidential first signaling that the trio presented a counter-proposal to the clubs.

According to a letter seen by Bloomberg, the alternative plan involves the creation of an ad hoc vehicle that would raise 2 billion euros (US $ 2.3 billion) in debt, which would be distributed to clubs in the same proportion as discussed in the CVC agreement. The clubs would then repay 115 million euros ($ 130 million) each year for 25 years through media revenue.

The Bloomberg report adds that the cost difference between the two proposals is substantial for clubs, with 900 million euros ($ 1 billion) under the new plan proposed by rebel clubs, up from 13.1 billion euros. euros ($ 14.8 billion) for the HVAC agreement. . The latter alternative, according to the report, assumes an interest rate of three percent, compared to an estimate of 9.9 percent for the CVC proposal.

The three clubs are said to have worked with Bank of America, JPMorgan Chase and HSBC to fund the plan.

The reported counter-offer precedes a key vote next week by club presidents on whether to back the CVC offer. La Liga need the support of 22 of their 42 clubs for the deal to be signed, although the Spanish football body and its chairman Javier Tebas have already pushed the pack on the rival alternative.

In a statement reported by Bloomberg, LaLiga noted that the proposed debt financing would prevent many clubs from meeting their financial obligations. Barca alone have a total debt of over 1.35 billion euros ($ 1.53 billion).