French League Approves Deal with CVC Capital Partners

The French soccer league announced an investment deal worth $1.66 billion with private equity firm CVC Capital Partners as part of a new commercial subsidiary in charge of marketing media rights. 

The league said that its general assembly has unanimously approved the subsidiary and CVC’s commitment to invest 1.5 billion euros ($1.66 billion).

The LFP league has said that most of the financial contribution will be paid to professional soccer clubs, with an additional share used for amateur soccer and the repayment of a state-guaranteed loan contracted in 2020.

Some of the investment will be used for the reserve funds and to start the commercial subsidiary activities, the league said. In return for the investment, CVC will hold a 13.0% stake in the league and value the total capital of its commercial subsidiary at € 11.5 billion (the US $ 12.7 billion). 

The league expects the transaction to close by the end of July after consultations with representatives of LFP staff and a green light from competition authorities. Other than soccer, CVC also invested in Formula One, rugby and volleyball.