(This article and headline have been corrected based on information from LaLiga to clarify the scope of the agreement and to remove an incorrect figure regarding the size of CVC’s investment.)
The top soccer league in Spain, home to Barcelona and Real Madrid, has agreed to form a new holding company with CVC Capital Partners to focus on commercial ventures, in a deal that values LaLiga at $28.7 billion (24.25 billion euros).
The agreement was approved unanimously Thursday by the LaLiga Executive Committee, LaLiga said, and will be proposed to the league’s general assembly.
The new holding company will not cover league management or broadcast rights, and will focus on commercial ventures, including sponsorships, LaLiga said.
The deal could help buoy the finances of clubs pummeled by the pandemic, including Barcelona, which is trying to re-sign its superstar, Lionel Messi, as it also attempts to restructure its debt.
A spokesman for CVC, which has deep ties to sports and whose portfolio includes the Six Nations Championship, Europe’s top national team rugby competition, didn’t immediately respond to an email seeking comment on the deal, which was first reported by the New York Times.
Negotiations have been kept to a small group because of the possibility the deal might not be completed, said a person familiar with the matter.
CVC had entertained an investment with the top Italian soccer league, Serie A, for a piece of its media rights entity. Negotiations ended without a deal earlier this year.
The talks come on the heels of attempts by a number of Europe’s top teams, including Barcelona and Real Madrid, to form a so-called Super League to capitalize on those clubs’ ability to generate revenue. The initial attempt to forge the breakaway midweek club competition collapsed in April after word leaked.
CVC previously owned the Formula One auto racing circuit, which was sold to Liberty Media in 2017.