By AFP

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Madrid,

Spain's top football league announced Wednesday it has agreed in principle to sell 10 percent of its business to private equity firm CVC Capital Partners for 2.7 billion euros ($3.2 billion) to help finance long-term growth.

"The operation is designed to drive the global growth of La Liga and its clubs, continuing its transformation into a global digital entertainment company," the league said in a statement.

"The operation will be carried out through the creation of a new company to which La Liga will transfer all its businesses, subsidiaries and joint ventures and in which CVC will hold a minority participation of 10 percent."

The deal values La Liga at around 24.2 billion euros and, if approved, will fund structural improvements while also offsetting some of the immediate impact from COVID-19, the league said in a statement.

"This agreement aims to lead the transformation that the entertainment world is undergoing and to maximise all growth opportunities for clubs."

Some 90% of the funds raised will be channeled directly to clubs, which must use them to finance investment programmes agreed upon with La Liga.

With the boost from the investment, the Spanish league hopes to match or exceed the English Premier League's business in the next six to seven years, a source close to La Liga added.

The stake sale still requires approval from the league's executive committee and clubs.

If approved, it could help cash-strapped teams including FC Barcelona shore up faltering finances that were dealt a fresh blow by the pandemic.

The private equity firm, as part of a consortium last year, entered talks to buy a stake in the media business of Italy's top soccer league. The deal fell through following objections from some soccer clubs.