Real Madrid planning to SUE LaLiga following £2.3bn cash injection

Real Madrid planning to SUE LaLiga following £2.3bn cash injection

Real Madrid are going to sue LaLiga after being left disgruntled by the league's £2.3billion deal with an American private equity firm.

The Spanish league celebrated the initiative, called 'Boost LaLiga', as a major cash injection to its clubs to help alleviate the financial hit they have all taken from the coronavirus pandemic.

The deal is a shot in the arm for Barcelona and means they can finally sign Lionel Messi to a new contract and register new arrivals such as Sergio Aguero, Eric Garcia and Memphis Depay after struggling to comply with the league's financial regulations.

But Real are less than impressed with the announcement.

Spanish website El Independiente reported that Real are planning to sue the organising body for misappropriation of assets.

The report says Real believe that part of the rights the league are selling to US firm CVC,  such as television and marketing rights, belongs to the club and they have not consented to their sale.

The report adds that representatives from Real marched on LaLiga's headquarters in the Spanish capital to examine the details of the deal mere hours after it was announced.

And even though Barcelona are poised to benefit from the deal, the Catalans are also reported to be against it, as are Athletic Bilbao, who, like Real, Barca and Osasuna, are owned by their members and are not limited companies like the league's other clubs.

A LaLiga source said the organisation had not yet received any notification from Real Madrid about legal proceedings.

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 £20.5billion.

The league said the deal will allow it to 'become a leading global player in the digital entertainment market' while bolstering the competition and providing more resources to clubs.

It also said CVC will not have control of the management of the competition or the sale of its broadcasting rights.

Real's threat to sue LaLiga, meanwhile, is just the latest chapter in a long saga of legal feuds between the 34-times Spanish champions and the organising body, with president Florentino Perez picking yet another fight with league chief Javier Tebas.

Real and LaLiga have had no fewer than 51 legal disputes in recent years.

LaLiga have won 23 cases, Real have won five while 21 cases are ongoing, with the club deciding to drop two cases.

In May of this year the club lost a legal battle over television revenues, unsuccessfully asking a court to make void parts of the league's rules for centralising television rights and failing to receive £19.5million they claimed they were owed.

Tebas and Perez have also been at war over Real's bid to launch the doomed European Super League, which LaLiga vehemently opposed.
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