French investigators conducted raids on the offices of the French soccer league and private equity firm CVC Capital Partners as part of an investigation into possible corruption and embezzlement related to an investment deal. The investigation, which began in July, focuses on charges of misappropriation of public funds, corruption of a public official, and illegal taking of interest. The raids were carried out as part of this ongoing investigation, which opened following a complaint from a group called AC! Anticorruption in November 2023.
The investment deal in question was approved by the French soccer league in 2022, under the leadership of current president Vincent Labrune. CVC Capital Partners invested 1.5 billion euros in return for a 13% stake in a new commercial subsidiary responsible for marketing media rights. This investment was seen as a lifeline for French soccer after the collapse of a major broadcast rights deal with Mediapro, which had pushed the league close to bankruptcy. The deal with Mediapro was expected to be worth over 4 billion euros but fell through after just four months.
Following the collapse of the deal with Mediapro, the French league sought financial assistance to support clubs facing huge revenue losses exacerbated by the COVID-19 pandemic. The deal with CVC was aimed at providing a cash injection to help clubs, with the majority of clubs supporting the agreement. However, the distribution of funds has been challenged by some clubs, with Le Havre launching a lawsuit against the league over the allocation of money. The distribution of funds favored larger clubs such as Paris Saint-Germain, Marseille, Lyon, Lille, Monaco, Nice, and Rennes, while smaller clubs received lesser amounts.
The investigation into the investment deal with CVC was prompted by concerns raised by AC! Anticorruption regarding the possible misappropriation of public funds during the creation of the league’s subsidiary company following the transfer of capital to CVC. The French National Financial Prosecutor’s Office is overseeing the investigation, which involves allegations of corruption and embezzlement. CVC Capital Partners declined to comment on the case, while the French league stated that it is cooperating with the investigation in a transparent manner.
The financial rescue plan put in place by the government to support the French soccer league following the collapse of the deal with Mediapro highlighted the financial challenges faced by clubs in the wake of the pandemic. The deal with CVC was seen as a source of much-needed funding for clubs, with the majority of clubs in support of the agreement. However, the distribution of funds has come under scrutiny, particularly by clubs like Le Havre, which feel they have been unfairly treated in the allocation process. The investigation into the investment deal aims to uncover any potential wrongdoing and ensure accountability.
The fallout from the collapsed deal with Mediapro and the subsequent financial challenges faced by French soccer underscore the importance of transparency and accountability in managing investments and distributing funds. The investigation into possible corruption and embezzlement related to the CVC investment deal is ongoing, with French authorities working to uncover the truth behind the allegations. As the investigation progresses, more details may emerge regarding the extent of any wrongdoing and the impact on the financial stability of the French soccer league.
