Florentino finalizes an offer with JP Morgan for LaLiga to overturn the Tebas-CVC pact

The delegated commission of the Professional Football League (LFP) approved this Wednesday the agreement by which CVC Capital Partners will inject 2,000 million euros to the first national football competition in exchange for keeping 10% of television revenues for the next 50 years. A business that has been opposed by Real Madrid, FC Barcelona and Athletic Bilbao, and that Florentino Pérez wants to burst at the last minute with an enhanced offering financed by JP Morgan, but with a mortgage for half the period.

According to financial sources, the highest president of Real Madrid, who has criticized from the beginning the agreement with CVC and the forms of Javier Tebas, president of LaLiga, for not informing you until the day of the announcement in early August, considers that the structured proposal with JP Morgan is much more profitable for the 42 professional clubs of the First and Second Division, they need the money urgently. Several of them, like the Valencia CF and Real Betis, they are requesting bridging loans to meet their more immediate payments.

First, because shortened to 25 years the period in which the investor will keep the income from television, compared to the 50 signed in the agreement with CVC. Second, because, according to these sources, it values ​​about 30 billion the entire business of the LFP, above the 24,200 million from the transaction with the US venture capital fund. However, the specific money that JP Morgan would contribute is unknown, which would at least be 1,500 million for half the time of pledging the rights, compared to the initial 2,700 million of CVC, when Real Madrid, Barça and to Athletic, and the Final 2,000 million, not counting these three teams.

Florentino Pérez seeks with this last minute maneuver that the clubs the signing of the agreement is reconsidered, which should take place in the extraordinary assembly called by Thebes next December 10. Although the delegated commission, made up of 14 teams, including the Atlético de Madrid, signed the agreement with CVC on Wednesday, the rest of the members of the Santander League and the Smartbank League must ratify within a week the alliance with the ‘private equity’ led in Spain by Javier de Jaime. If so, the following week they would receive the first 400 million, 20% of the total, in your accounts.

The movement during the extension of Florentino Pérez pretends that the clubs do not sign the agreement with CVC led by Thebes, who threatened to take him to court for “Scam and unfair administration”, according to Real Madrid leaked. The lawsuit, of which nothing has been officially known, was also against De Jaime, a former partner of the president of ACS when they shared investments in Abertis, whom he accused of being a “shark” for fleecing the League and obtaining some 20 billion revenue at the expense of Spanish football.

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Carlos Hernanz

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In the recent extraordinary assembly of Real Madrid, called to approve the extra costs of the renovation of the Santiago Bernabéu for 250 million, Florentino affirmed that the club will analyze in detail all aspects of the operation and will act accordingly against all the parties involved in the event that it considers that the applicable regulations are violated, defending the interests of the club before the Courts of Justice of the appropriate order. “And we will also act if LaLiga persists in its efforts to commercialize television rights for terms that exceed the criteria set by the Spanish competition authorities.”

Other sources doubt that the president of the white entity will stop agreement with CVC They add that the alleged offer from JP Morgan would come after the current leader of the League has met in the last three months without success with other venture capital funds to present an alternative proposal. The US bank has become Florentino Pérez’s regular financier, as he has taken over, along with Bank of America, of the 800 million that the Bernabéu will finally cost, besides being the Super League promoter with which Florentino has tried to revolutionize European football.

In addition, they add that, given the risk assumed, since if television rights lose valueAs can be the case in the auction to be held on December 13 for the next five seasons, behind JP Morgan there must be a venture capital fund similar to CVC.

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The delegated commission of the Professional Football League (LFP) approved this Wednesday the agreement by which CVC Capital Partners will inject 2,000 million euros to the first national football competition in exchange for keeping 10% of television revenues for the next 50 years. A business that has been opposed by Real Madrid, FC Barcelona and Athletic Bilbao, and that Florentino Pérez wants to burst at the last minute with an enhanced offering financed by JP Morgan, but with a mortgage for half the period.

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