French soccer league offices, equity firm CVC raided in probe
PARIS, France: French investigators searched the offices of the French soccer league and private equity firm CVC Capital Partners as part of an investigation into alleged corruption and embezzlement linked to a major investment deal.
This probe, which began in July, focuses on accusations of misappropriation of public funds, corruption of public officials, and illegal interests related to the French league’s partnership with CVC.
In 2022, under league president Vincent Labrune, the French soccer league entered into an agreement with CVC to form a commercial subsidiary responsible for marketing TV rights.
CVC invested 1.5 billion euros (US$1.6 billion) for a 13 percent stake, valuing the subsidiary at 11.5 billion euros. The deal was aimed at financially stabilizing the league after a significant broadcast contract with Mediapro fell apart, pushing the league toward bankruptcy.
The investigation was launched after AC! Anticorruption, an anti-corruption organization, filed a complaint in late 2023, focusing on the potential misappropriation of public funds related to the formation of the subsidiary.
CVC declined to comment on the case, and the French league said in a statement that it is cooperating with the investigation “in total transparency.”
“The investigation, which is taking place in the greatest serenity, will confirm that the action taken by the League has always been guided by a deep commitment to French soccer, in full compliance with the rules in force,” the statement said.
The financial challenges leading up to the CVC agreement stem from the collapse of the Mediapro contract, originally valued at over 4 billion euros ($4.8 billion) over four years. When Mediapro defaulted, the league turned to the government for financial relief as the COVID-19 pandemic further impacted revenues.
The CVC deal, widely supported by clubs, offered much-needed cash to stabilize French soccer. However, it was contested by some, including Le Havre, which pursued legal action over its share distribution.
As part of the CVC agreement, significant funds were allocated to Ligue 1 and Ligue 2 clubs. Paris Saint-Germain received the most significant portion, 200 million euros, followed by 90 million euros for Marseille and Lyon, and 80 million euros for Lille, Monaco, Nice, and Rennes.
The remaining Ligue 1 clubs were granted 33 million euros each, while Ligue 2 clubs received 3 million euros each if they stayed in the second tier for designated seasons. Le Havre, promoted to Ligue 1 at the end of the 2023 season, raised concerns about missing out on its full share, receiving only 1.5 million euros.