Thebes replies to Florentine

The open war between Real Madrid and LaLiga is fought in offices, courts and also on social networks. Javier Tebas has responded on Twitter to the official statement of the white club in which the entity informs that its Board of Directors has decided to take legal action through civil and criminal channels against Tebas itself, in addition to the CVC fund and the head of this entity in Spain, Javier de Jaime.

“The threatening method that FP (Florentino Pérez) has used in private for years now is now being transferred to the public. Clubs and institutions have been supporting their threats for years. Since 2015 against centralized sales, constant challenges to agreements, the Super League … Real Madrid deserves more “, has published Tebas on Twitter, a social network that he already used on Friday to directly refute Joan Laporta's explanations about the goodbye of Messi from Barcelona.

LaLiga statement

LaLiga, as an institution, also sent a statement to the media in which the employer's association states the following:

“Given the announcement by Real Madrid CF of legal actions against executives of LaLiga and CVC Capital Partners, LaLiga wants to indicate:

1. LaLiga reiterates that it has all the favorable legal reports, confirming maximum compliance with the legal system in all dimensions of the LaLiga Impulso project, which has had the advice of Uría Menéndez from LaLiga and Latham & Watkins from CVC.

2. The leaders of Real Madrid CF, with these actions, only intend to prevent the Clubs / SAD of professional football from ruling on the agreement with CVC Capital Partners, to through coercive and threatening methods.

3. Spanish professional football will express itself in full freedom (including Real Madrid CF itself) next Thursday, August 12 at the Extraordinary General Assembly of LaLiga.

This decision of Real Madrid CF It was a foreseeable reaction given the history of said Club to oppose head-on and demand any strategic project that supposes an advance and a impulse of the competition and its Clubs “.

In addition, LaLiga reviews the legal disputes it has had with Real Madrid in recent years: “Specifically, LaLiga accumulates 51 legal actions by Real Madrid, of which the majority have been won by LaLiga. Among the actions won by LaLiga against Real Madrid in recent years, interposed to milestones that have been critical and necessary for LaLiga and its Clubs, are:

• Year 2015: Approval of Royal Decree Law 5/2015, in which LaLiga managed to renegotiate the conditions of exploitation of the rights for the 2015/2016 season so that the clubs were finally able to obtain a capital gain on the income derived from the contracts signed with the operators. Real Madrid challenged the statutory modification that enabled the distribution of almost 300 million euros and requested a precautionary measure to prevent the distribution of those amounts among LaLiga clubs. Finally, The Court did not consider that said reform violated the rights of the clubs, but rather that it represented an additional benefit, reproaching Real Madrid for their bad faith to the detriment of the rest of the clubs.

• Season 2018/2019. Real Madrid challenged the annual accounts for the 2018/2019 season considering that LaLiga lacked the capacity to deduct a series of expenses from audiovisual income and requesting the additional payment of € 23,892,977, to those received in accordance with the liquidation procedure approved by the clubs. However, the Court rejected this claim, considering the expenses and investments made by LaLiga to value the rights to be appropriate.

In all these cases, the courts have agreed with LaLiga and at no time have LaLiga's governing bodies stopped and / or changed their plans for the future and growth. “

What's more, LaLiga adds: “LaLiga Impulso, which was unanimously approved by the League Delegate Commission, supposes an ambitious investment plan of 2,700 million euros that will provide LaLiga and the Clubs with resources with the aim of continuing the transformation towards a global digital entertainment company, strengthening the competition and transforming the experience of the fans.

LaLiga respects, as always, all opinions and will continue, firmly, reinforcing the diversity of Spanish football and the plurality of Clubs. The reinforcement for LaLiga that this strategic operation entails will benefit Spanish football as a whole, including Real Madrid, as one of the main representatives of football in the world“.

The LaLiga-CVC agreement

The agreement reached by LaLiga implies that the clubs would receive an economic injection of 2.46 billion euros to clean up the deterioration that their accounts have suffered due to the crisis derived from the coronavirus. LaLiga would transfer that amount in the form of participative loans to the clubs, which would have to return the money, without interest, within 40 years. The distribution would be made in proportion to the participation of the clubs in the income from the audiovisual rights of the last seven seasons.

In exchange for your financial contribution, the CVC investment fund would obtain a 10.95% stake in LaLiga's business, with no expiration date. It would also take 10.95% of the audiovisual income of the championship for 50 years. Madrid considers that the operation is detrimental to the interests of the LaLiga clubs, because the value of the rights that are transferred is much higher than the agreed price and the agreement mortgages the income of the clubs for several decades while the fund can recover your investment in an estimated term of between 10 and 20 years.