More multi-billion equity deals will be agreed across Europe, says LaLiga

MADRID : The 1.99 billion euros ($2.24 billion) media rights deal between LaLiga and private equity firm CVC is likely to open the door for similar high-stake investments across Europe’s major soccer leagues, LaLiga told Reuters on Monday.

"We are the first but won't be the only one,” Spanish soccer league executive director Oscar Mayo told Reuters in an interview.

“Many leagues are calling us to ask if we can help them on how to structure their deal."

Speaking ahead of Tuesday’s launch of the partnership, the first of its kind in soccer with a private equity fund, Mayo added: "France is in the verge of doing so and already have the support of their government, Portugal and Italy are also close. It won't take long to see similar deals being signed.”

Reuters reported in December that buyout funds including CVC and Bain Capital were lining up preliminary bids for a stake worth some 1.5 billion euros in the French league media rights business.

Beyond a much-needed cash injection, Ligue 1 hopes that private equity firms could help make French soccer more attractive, and double or treble revenues in five to 10 years.

"The industry have matured enough now to have the credibility to do this type of partnership," Mayo said.

"Ten years ago the clubs were losing money, lots of players were suffering with unpaid salaries, we had a debt of more than 300 million euros with the government. The industry was not ready, it was difficult even to get financial help from banks. We needed to create stability and structure through the Financial Fair Play so we could inspire trust to investors."

The 1.99 billion euro investment will secure CVC an 8.2per cent stake in a new company that will manage revenues from LaLiga's broadcasting and sponsorship