IPL 2022 – CVC Ahmedabad IPL Team: Not only CVC Capital Partners investments in the Indian Premier League (IPL) team of Ahmedabad is under some stress – but now their investment proposal in La Liga is also facing some serious opposition. Real Madrid, Barcelona and Athletic Bilbao have put forward an alternative funding proposal to Spanish soccer clubs in a last-ditch effort to scuttle LaLiga’s multibillion dollar deal with CVC Capital Partners – Follow LIVE Updates on world of Sports Business on InsideSport.IN
IPL 2022: After Ahmedabad IPL team, CVC’s investments in La Liga also in trouble as Real Madrid, Barcelona offers counter proposal
CVC La Liga Investments – Barcelona & Real Madrid Counter: It’s clear that some of the top clubs including Real Madrid, Barcelona, Athletic Bilbao are not happy with CVC Investments in La Liga.
In August this year 38 of 42 Spain’s top two division clubs voted in favor of CVC’s $3.1 Billion investment in the league – but the top clubs voted against the deal.
Not only Real & Barca voted against the deal but now they themselves have comeback with a counter proposal.
Barcelona & Real Madrid Counter: According to a letter seen by Bloomberg, the alternative plan involves the creation of a special purpose vehicle that would raise US$2.3 billion in debt.
– The said funds would be distributed to clubs in the same proportion discussed in the CVC deal.
– The clubs would then repay US$130 million each year for 25 years through media revenue.
– Bloomberg’s report adds that the cost difference between the two proposals is substantial for clubs.
– The latest alternative, according to the report, assumes a three per cent rate of interest, compared with an estimate of 9.9 per cent for the CVC proposal.
The three clubs have reportedly been working with Bank of America, JPMorgan Chase and HSBC on financing the plan.
Why Barcelona & Real Madrid are countering CVC Deal?
The reason is not very clear but according to few reports Barca & Real are not too pleased because as per the CVC proposal – 11% of future media rights revenues of La Liga for next 50 years will have to be given to CVC in lieu of the funds.
Unlike Barcelona & Real Madrid – La Liga’s Javier Tebas is in favor of CVC proposal and the league is likely to approve the same in forthcoming board meeting.
IPL 2022: What is the status of CVC Ahmedabad IPL Franchise deal?
The news is good for CVC Capitals Partners from India. Despite stiff opposition from one section of BCCI, in all likelihood their investments in IPL franchise will get green signal from the board.
InsideSport has learnt that the BCCI & IPL Governing Council is set to give go ahead to the ownership of CVC Capital Ventures for the Ahmedabad team & the announcement will be made coming week.
“The Ahmedabad team issue will be sorted next week. Though the IPL GC will formally finalize and announce the Mega-Auction dates but it is likely to be conducted in 2nd week of January”, said one of the top BCCI official after attending AGM in Kolkata.
Ahmedabad IPL Franchise: It is worth noting that BCCI has formed a neutral panel on Saturday to look into the matter of CVC Capital Partners ownership of Ahmedabad franchise. The panel is yet to give its formal report but the initial information suggest that the investment company will be given a GREEN-CHIT by the panel and the BCCI.
CVC Capital Partners were the second-highest bidder, as the BCCI brought in two new franchises starting IPL 2022. CVC won the Ahmedabad franchise for Rs 5,625 crore, the Lucknow franchise went to Sanjiv Goenka-owned RPSG Group for Rs 7,090 crore.
Why CVC ownership is under scanner? CVC’s acquisition of an IPL franchise, however, had been questioned because of their investments into betting companies. Under the ‘portfolio companies’ list on the CVC Capital Partners’ website is Tipico, which is a sports betting and online gaming company. Another link to the gaming & betting industry comes from Sisal, a betting gaming and payments, consumer/retail company.
These links were questioned by some including the former IPL Boss Lalit Modi who posted: “I guess betting companies can buy an IPL team. must be a new rule. Apparently, one qualified bidder also owns a big betting company. what next? does BCCI not do their homework? what can Anti-corruption do in such a case? #cricket”.
This has resulted in lengthy due diligence process by the BCCI. The board according to information with InsideSport has taken at least half a dozen of legal opinions since then & most have cleared CVC ownership. Finally on Saturday, the IPL GC formed a neutral panel with legal luminaries on board to give final verdict on the Ahmedabad franchise matter.