Six Nations investors CVC Capital Partners have offices raided
CVC Capital Partners, whose sport investments include the Six Nations and Premiership Rugby, has reportedly had its offices raided alongside the French football league in Paris.
Police searched the office of the private equity firm and the football body on Tuesday as part of a potential corruption investigation, according to reports.
Prosecutors are said to be examining allegations of embezzlement and corruption of public funds used for the commercialisation of French football broadcasting rights by CVC and Ligue de Football Professionnel.
CVC Capital Partners has minority investments in rugby’s Six Nations, Premiership Rugby and United Rugby Championship, as well as Spanish football’s LaLiga and volleyball. It previously held a majority stake in Formula 1 before selling to current owners to Liberty Media.
French outlet L’Equipe first reported of the raids and stated LFP head Vincent Labrune also had his home searched.
CVC Capital Partners in hot bother?
Two years ago the firm invested €1.5bn to acquire 13 per cent of a new vehicle set up to manage the commercial rights of the Ligue de Football Professionnel, which operates across French football’s top two tiers.
The deal was reported to last 99 years and see CVC receiving dividends. The French Senate has been looking into the deal too.
According to reports, revenue from television fell by over a third compared to last year with BeIn Sports and Dazn paying less than half of the LFP’s targeted €1bn per season.
No charges have been brought, CVC declined to comment to the Financial Times and the LFP had not responded to the newspaper for comment.
Senators Laurent Lafon and Michel Savin wrote in their findings: “Indeed, while the long-term benefit of the deal with CVC remains to be demonstrated for the clubs, given the lifetime dividend payment, its appeal for the LFP’s leaders is, on the other hand, clear, immediate, and without future obligations.”