Whopping £2.3bn deal: La Liga ready to rival EPL in riches

The Spanish top-flight is set for a major cash boost with a new deal signed with a U.S. Private Equity firm, CVC Capital Partners. The deal is valued at about £2.3bn with CVC to be given a 10% stake in La Liga's affairs. The La Liga brand is said to be valued at about £24bn, leading to the American equity firm's readiness to pay £2.3bn to purchase a 10% right in the league. 

The £2.3bn bounty is expected to be shared amongst all club sides under the umbrella of La Liga. About 90% of the investment package will be shared amongst the clubs with Barcelona to take about €270m while Real Madrid would benefit at least €261m. Other La Liga sides would also get sizeable chunks of the deal money. La Liga has instructed that clubs would have to use 70% of the money on infrastructural development, while a maximum of 15% can be used for player acquisition and another 15% for debt financing. 

With this bumper new deal, the Spanish top-flight is set to compete a bit more favourably with the English Premier League in terms of infrastructure, player development and player acquisition.  Over the years, huge TV deals have made the EPL teams hold an edge, signing top players from around the world whilst also developing quality academy players. The deal is also expected to extend to the Spanish second division and women's teams in the first division. 

The CVC Investment Package comes at an opportune time for two of the biggest clubs in Spain; Barcelona and Real Madrid. Both clubs are in varying degrees of financial crisis and an injection of cash is welcomed. The deal I would give Barcelona the funds to be able to sign-up Lionel Messi to his new contract and also officially register new players like Sergio Aguero, Memphis Depay and Eric Garcia. While Real Madrid is expected to now launch an audacious bid for PSG youngster, Kylian Mbappe.