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Ligue 1 Clubs Approve CVC Investment

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Ligue 1 Clubs Approve €1.5bn CVC Investment | LFP to reportedly receive an Initial €600m this summer

CVC has been in exclusive talks with LFP overtaking a 13% stake worth €1.5bn in a new commercial company

French Ligue 1 Clubs approve €1.5bn CVC Investment. French football clubs agree to the distribution of funds from private equity firms. Clubs in French top-flight Ligue 1 have agreed to the Professional Football League’s (LFP) investment deal with private equity firm CVC Capital Partners.

Key takeaways:

  • CVC has been in exclusive talks with LFP overtaking a 13% stake worth €1.5bn in a new commercial company
  • LFP to reportedly receive initial €600m this summer, with PSG taking the biggest cut

Earlier this month, it was confirmed the Luxembourg-based CVC took a 13% stake worth €1.5 billion ($1.6 billion) in the organization’s new commercial company. It will handle the selling of broadcast rights for Ligue 1.

According to LFP, the deal would value the French football commercial arm at €11.5 billion ($12.6 billion). Clubs in the second-tier Ligue 2 have also agreed to the investment.

CVC saw off competition from the likes of Hellman & Friedman, Oaktree Capital, and Silver Lake for the stake. CVC’s sports investment portfolio also includes rugby union, cricket, and volleyball.

Distribution of Funds

LFP will receive an initial €600 million (US$658 million) this July. Paris Saint-Germain, France’s biggest club, will reportedly take €200 million ($219 million) of the €1.5 billion investment. Initially wanted about 30% of the total.

Olympique de Marseille and Olympique Lyonnais will purportedly pocket €90 million ($98.6 million) apiece. Meanwhile, OGC Nice, Stade Rennais, AS Monaco and Lille OSC will get €80 million ($87.7 million) each.

The remaining Ligue 1 clubs will reportedly be paid €33 million ($36.2 million) each. Of this amount, €16.5 million will arrive this July and the remaining half will be received in June 2023.

According to reports, these payments will be made over 3 years. The first amount will be 40 percent of the total, followed by consecutive 30 percent installments over the next two seasons.

The LFP will also reportedly immediately reimburse a €170 million ($186.3 million) state loan it took during the height of the Covid-19 pandemic. In addition, the organization will place €100 million ($109.6 million) in a reserve fund and a further €100 million will be used for operating costs for the new commercial company.

The deal is expected to be formally signed off at an LFP general assembly on 1st April.

Written By

High on sports since forever, aspiring sports journalist and a FC Barcelona fan. Enjoys writing articles on any sport. Can also be considered a F1 bandwagoner.

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