La Liga has responded with a strong statement to the alternative CVC financing proposal presented by Real Madrid, FC Barcelona and Athletic Club. The League has managed to validate with the votes of 38 out of 42 clubs, the agreement with CVC that aims to provide the teams with liquidity with a loan of 2 billion euros to La Liga, in exchange for 10% of the business volume of the next 50 years.
But the three mentioned clubs would be against this agreement and would have proposed an alternative. This offer would be promoted mainly by Real Madrid, which would be based on an agreement similar to the one they used to remodel the Santiago Bernabéu, consisting of the issuance of bonds, whose main creditor would be the US firm, JP Morgan. All the details of this counter offer have not been revealed, but it is known that the main difference with the CVC would be that the term of engagement would be 25 years instead of 50.
The League has issued a forceful statement against this alternative that it considers a maneuver to try to undermine the agreement with CVC. The formalization of this agreement will take place on December 10, therefore, La Liga has expressed its discomfort that the alternative has been presented several days before, if the teams that have presented it have known it since August.
In addition, they regret in the statement that the documentation is incomplete, which makes it impossible to assess. Finally, they consider the offer unfeasible for most clubs, since the CVC’s long term is due to the deep indebtedness that the teams have. The fact of reducing the repayment period to 25 years only makes the situation longer, while with the CVC there is time to restructure the competition so that the growth of Spanish football is sustainable.
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