It’s boiling over in Spain. Real Madrid and Barcelona are going up against La Liga, what’s it all about?

You may have noticed that La Liga president Javier Tebas recently signed a deal to sell the rights to CVC. However, it has absolutely not met with understanding from the two biggest clubs in Spain, Real Madrid and Barcelona.

Real Madrid and Barcelona, two irreconcilable rivals on the pitch who will not join together under any circumstances. But once money is involved, hatred goes aside and the presidents of the rivals, Florentino Pérez and Joan Laporta, fight for one team. How is this possible?

La Liga has seen a significant decline in viewership in recent years, which means less money for the clubs. In addition, the Spanish clubs have been hugely hurt by the coronavirus pandemic, with both giants losing millions of euros from tickets and club museums.

This means only one thing – an exodus of the best players and even less viewership to go with it. La Liga has lost Neymar, Cristiano Ronaldo, Sergio Ramos and, most recently, Lionel Messi in the last four years. That is a huge hit indeed. And something must be done about it, thought La Liga president Javier Tebas.

That is why he has signed a deal to sell 10% of La Liga rights to CVC. 90% of the money the company pumps into the Spanish league should go directly to the clubs. Real Madrid and Barcelona, as the biggest clubs, would receive the biggest amount, but only 15% could be used for transfers and player salaries. In the end, they could use around €39 million to strengthen their squad.

Javier Tebas has decided to do something about the situation where financial rights in the Premier League allow clubs to spend astronomical amounts on transfers and player salaries. And they are running away from other leagues. But according to the presidents of the two Spanish giants, he has not chosen the right path. And that’s why they issued a statement criticising the move.

Real Madrid

“This agreement was reached without Real Madrid’s participation or knowledge and today, for the first time, La Liga has given us limited access to the terms of the agreement, ” Real Madrid said in an official statement on Thursday.

“The clubs signed their audiovisual rights for the sole purpose of selling them for three years. This agreement, through a misleading structure, expropriates 10.95% of the clubs’ audiovisual rights for the next 50 years, which is contrary to the law.”

“The negotiations were conducted without a competitive procedure and the financial terms agreed with CVC Capital Partners give them an annual return of over 20%. This opportunistic fund is the same one that tried and failed to reach similar agreements with the Italian and German leagues.”

“Real Madrid cannot support this act, which puts the future of 42 Primera and Segunda División clubs in the hands of a group of investors. Not to mention the future of these clubs who qualify for the next 50 years.”

“Real Madrid will convene an Assembly of Representative Members to discuss this deal and to discuss the significant loss of equity, which is unprecedented in our 119-year history,” the capital club concluded in a statement.

Barcelona

“FC Barcelona considers that the announced operation has not been sufficiently discussed with the clubs (owners of the television rights); that the amount is not adequate with regard to the years of duration, and that the agreement affects part of the audiovisual rights of all the clubs for the next 50 years,” Barcelona began its official statement.

“FC Barcelona considers it inappropriate to sign an agreement for half a century, given the uncertainties that still surround the football world.”

“The terms of the contract that La Liga is signing condemn the future of FC Barcelona with regard to broadcasting rights.”

“FC Barcelona wishes to express its surprise at the agreement conducted by La Liga, in which the views of the teams, including those of FC Barcelona, were not taken into account. Nor has there been a presentation of the options offered by other competitors in order to evaluate the pros and cons in a post-pandemic situation in which there are still many questions that remain unanswered,” concluded the Catalan club’s statement.

La Liga

La Liga president Javier Tebas still believes he made the right decision and that the deal struck with CVC will help pull La Liga back to the top.

However, in the fight against the competition’s decline, the three main leaders should be united and come up with a common solution. That is why Perez and Laporta are unhappy. As presidents of the biggest clubs in Spain, they should have their say, especially in such an unpleasant situation.

Source: Goal, Real Madrid, Barcelona