MADRID (AP) — The Spanish league took a step toward cutting into the Premier League's global dominance on Wednesday, securing €2.7 billion ($3.2 billion) in funding to boost its clubs' finances and increase revenue growth over the next few years.
The deal unanimously approved by the league's executive committee should increase the clubs' spending power and is expected to help Barcelona guarantee a new contract for Lionel Messi, who is yet to officially say whether he will remain with the club.
Real Madrid, which has often been at odds with the league and reportedly was against the deal, could also benefit by increasing its chances of signing Paris Saint-Germain star Kylian Mbappé, a longtime target for the club.
The strategic agreement with international investment fund CVC Capital Partners, being dubbed “Boost LaLiga,” still needs to go through the league's general assembly, when a majority of the clubs from the first and second divisions must give their final approval.
“I think there could be one or two clubs that won't agree with it, but this is positive for soccer in general," Real Betis president Ángel Haro told The Associated Press. “The clubs would be getting a very relevant amount of money to help improve the teams and the clubs' infrastructures in general. This makes the league stronger.”
CVC used to own Formula One and recently bought a stake in rugby’s Six Nations tournament. As part of the agreement with the Spanish league, the private equity firm would have a share of about 10% of the league's revenues and a stake of 10% in a new commercial entity that values the league at 24.2 billion euros ($28.7 billion).
The funding would allow the league to boost its growth and increase its global presence as it continues to try to catch up to the powerful Premier...