The French police searched the offices of the Ligue de Football Professionnel (LFP) in Paris and those of the private equity firm CVC Capital Partners on Tuesday. The background involves investigations into alleged corruption and embezzlement of public funds in connection with the deal between the LFP and CVC, according to a judicial official.
In 2022, CVC invested 1.5 billion euros for a 13 percent stake in a new subsidiary of the LFP, which manages the marketing rights for broadcasting French top-league matches. The contract has a duration of 99 years and ensures CVC long-term dividends. The LFP hoped to significantly increase revenue through CVC's expertise in sports marketing and in international markets.
Despite this agreement, French football clubs continue to struggle with financial difficulties two years later, particularly due to declining domestic media rights. Revenue from TV rights fell by 35 percent this year and, at less than 500 million euros, is significantly below the originally targeted amount of one billion euros. Current broadcast partners are DAZN and beIN Sports.
LFP President Vincent Labrune is struggling to find reliable media partners for broadcasting the games, even within France where the league should actually be the most popular. Ligue 1 is the fifth largest league in terms of revenue behind England, Germany, Italy, and Spain, but smaller clubs have difficulty keeping up with the dominant Paris Saint-Germain.
The searches were first reported by the sports newspaper "L'Équipe," which also reported that Labrune's residence was searched. No charges have been filed so far; in France, preliminary investigations do not necessarily lead to a trial.
The LFP stated that it is fully cooperating with the authorities to provide all necessary information for the ongoing investigations. "The investigative measures, which were conducted calmly and orderly, will confirm that the efforts of the Ligue have always been guided by a deep commitment to French football and that all applicable rules were adhered to," said the LFP in a statement.
CVC declined to comment.
The investigations were triggered by a complaint from the citizens' initiative AC!! Anti-Corruption in 2023. Additionally, the French Senate is examining the deal between the LFP and CVC in a committee hearing. Senators Laurent Lafon and Michel Savin expressed concerns in a recently published report about the commissions of 37 million euros to investment bankers and lawyers working on the deal. They also questioned the bonus payment of 3 million euros to Labrune and pointed out possible conflicts of interest.
The difficulties of the LFP date back to a decision in 2018 to sell the majority of their media rights for a record amount of 800 million euros per year from 2020 to 2024 to the Spanish group Mediapro, instead of continuing the long-standing partnership with Canal+. When the pandemic hit, Mediapro stopped the payments, leaving the league and its clubs without important sources of income.
