In a stunning turn of events, the offices of the French football league and private equity firm CVC Capital Partners were raided by French investigators on Tuesday as part of a high-profile corruption probe. The searches, which sent shockwaves through the world of French football, are tied to an investigation launched in July focusing on potential misappropriation of public funds, corruption, and illegal taking of interest related to a controversial investment deal.
According to a judicial official with direct knowledge of the matter, who spoke on condition of anonymity, the investigation was sparked by a complaint filed in November 2023 by the anti-corruption group AC! Anticorruption. The lawsuit zeroed in on the possible misuse of public funds during the creation of the French league’s subsidiary company following a partial transfer of capital to CVC.
CVC’s €1.5 Billion Investment Under Scrutiny
The raids come in the wake of the French league’s approval of a landmark investment deal with CVC in 2022 under the leadership of its president, Vincent Labrune. As part of the agreement, CVC injected €1.5 billion into a new commercial subsidiary tasked with marketing media rights in exchange for a 13% stake, valuing the entire capital of the subsidiary at a staggering €11.5 billion.
The CVC deal emerged as a lifeline for French football, which found itself teetering on the brink of bankruptcy following the spectacular collapse of a major broadcast rights deal with Mediapro. The failed partnership, which was supposed to be worth more than €4 billion over four years for the top two tiers of French football, crumbled after just four months, leaving clubs facing massive revenue losses compounded by the COVID-19 pandemic.
Labrune’s Quest for a Cash Injection
Desperate to secure a financial rescue plan, French league president Vincent Labrune turned to CVC Capital Partners. The resulting deal garnered support from a large majority of clubs but faced opposition from Le Havre, which filed a lawsuit against the league over dissatisfaction with the distribution of funds.
Under the agreement, the 20 clubs playing in the top flight at the time were set to share more than €1.1 billion, with Paris Saint-Germain receiving the lion’s share of €200 million, followed by Marseille and Lyon with €90 million each. The remaining Ligue 1 clubs were allocated €33 million apiece, while Ligue 2 teams were granted €3 million each, provided they remained in the second tier for three seasons.
Le Havre’s Legal Challenge
Le Havre’s grievances stemmed from its promotion to Ligue 1 at the end of the 2023 season, which resulted in the club missing out on half of its entitled €3 million as a Ligue 2 team. Furthermore, upon returning to the top flight, Le Havre claimed it was not eligible for half of the €33 million earmarked for smaller Ligue 1 clubs since it was not in the elite division during the 2021-2022 season.
As the corruption investigation unfolds, the French football world anxiously awaits the outcome. The French league has pledged to cooperate fully with the authorities, stating that the probe will confirm its actions were guided by a deep commitment to French football and adherence to the rules. CVC, for its part, has declined to comment on the ongoing case.
The raids on the French league offices and CVC mark a significant escalation in the corruption scandal that has engulfed French football. With investigators combing through evidence and the legal battle with Le Havre looming, the future of the CVC investment deal and the integrity of the sport hang in the balance. As the investigation progresses, football fans and stakeholders alike are left to wonder what further revelations may come to light and how this crisis will reshape the landscape of French football in the years to come.
