The investigation reflects growing concerns about financial transparency in professional sports organizations, particularly in the wake of the COVID-19 pandemic's impact on revenues.
The involvement of a prominent investment fund like CVC raises questions about the long-term sustainability and governance of football leagues.
The outcome of the investigation could lead to significant reforms in the governance of French football, potentially altering how commercial rights are managed.
Increased scrutiny from regulatory bodies may prompt other leagues to reassess their financial agreements with private investors.
Investigation into LFP and CVC Agreement Intensifies
The Professional Football League (LFP) is under scrutiny as searches were conducted at its headquarters and the residence of its president, Vincent Labrune, on November 5, 2024. This investigation is part of a broader inquiry into a controversial financial agreement between the LFP and CVC Capital Partners, which was finalized in April 2022. Under this deal, CVC invested 1.5 billion euros for a 13.04% stake in the league's revenues. The agreement has faced significant backlash from various clubs, including Le Havre, who have raised concerns about the implications of ceding such a substantial portion of revenue for life.
The searches were initiated following a complaint filed by the anti-corruption association "AC!!" with the National Financial Prosecutor's Office (PNF). The complaint alleged misappropriation of public funds related to the LFP's commercial dealings and the establishment of its commercial subsidiary. This move follows a Senate report that criticized the agreement and recommended reforms in French football governance, particularly highlighting Labrune's substantial salary increase and the need to differentiate between the league's operational activities and its commercial ventures.
