By Jonathan Easton
French football league Ligue 1 has agreed to sell a stake in its media business to private equity firm CVC Capital Partners for €1.5 billion(US$1.6billion).
The Ligue de Football Professionnel (LFP) confirmed the agreement after entering into discussions with the Luxembourg-based private equity firm earlier this month.
The deal will see CVC take a 13 per cent stake in the league’s new commercial company that will handle media sales.
The LFP accepted the proposal from CVC, which beat out competition from fellow investment firms including Hellman & Friedman, Oaktree Capital and Silver Lake.
While the distribution of funds has not been disclosed, a number of local reports have said that the LFP will receive an initial €600 million in July, with €200 million going directly to Qatar-backed Paris Saint-Germain.
Marseille and Lyon will reportedly receive €90 million each, while remaining clubs will receive smaller amounts.
The LFP will also direct €170 million of the total to the French state in order to reimburse a loan it took out during the Covid-19 shutdown, while €100 million will go to each of a reserve fund and for the operating costs of the new company.
Meanwhile it is a busy period for CVC. Earlier this month the investment firm bought a stake in rugby’s Six Nations for £365 million, while it has also proposed a joint-venture with Italian operator TIM.
