LaLiga has confirmed the sale of a 10% stake for €2.7 billion to Luxembourg-based private equity firm CVC Capital Partners.

Under the terms of the agreement, LaLiga, which governs the top two tiers of the country’s football system, will form a new company to oversee commercial elements, such as sponsorship deals, in which CVC would take a 10% stake.

However, management of the league’s sporting responsibilities and its audiovisual rights business would remain outside the scope of the transaction, according to LaLiga.

“This agreement aims to lead the transformation that the entertainment world is undergoing and to maximise all growth opportunities for clubs,” the organisation said in a statement.

If approved, it will fund ‘structural improvements’ while offsetting some of the immediate impact of the COVID-19 pandemic, with Spanish clubs struggling financially due to the ongoing coronavirus crisis.

In June, it was reported by PricewaterhouseCoopers (PwC) that LaLiga’s total income will dip to €3.545 billion during 2020/21, due to a loss of matchday revenue, although the professional services firm added that due to the ‘economic strength of the clubs they will be able to manage this difficult season’.

Furthermore, LaLiga added that some 90% of the funds raised will be channeled directly to clubs which must use the cash to finance investment programmes agreed with the league.

The former owner of Formula One and MotoGP, CVC has recently held discussions with World Rugby, along with other interested private investment firms, over a stake in the rugby union governing body, to add to shares in Six Nations, Premiership Rugby and the United Rugby Championship (URC).

In February, the company made a $300 million investment in the International Volleyball Federation (FIVB), whilst CVC is also reportedly in talks to combine ​​the Association of Tennis Professionals (ATP) and Women’s Tennis Association (WTA).