Investigators have raided the Paris offices of both CVC Capital Partners and French soccer’s governing body, Ligue De Football Professionnel, amid a probe into alleged corruption.
According to several reports citing judicial officials, the searches are related to an investigation into the misappropriation of public funds launched in July. The home of LFP President Vincent Labrune has also been searched.
The case is linked to a deal between CVC and LFP that saw the creation of a subsidiary that manages the commercial rights of France’s top-flight soccer leagues. The investigation had been triggered by a complaint made by AC !!, a French anti-corruption association.
In 2022, CVC took a 13% stake in the commercial subsidiary LFP Media in a €1. 5 billion (around $1.6 billion) deal that valued the unit at €11.5 billion. CVC had fended off competing bids from the investors including Silver Lake, Hellman & Friedman, and Oaktree Capital. However, LFP has since struggled amid the falling value of media rights in its domestic market.
Private equity firms have been making significant inroads into European football in recent years, with more than a third of European clubs in the Big Five top-flight European league having some form of private equity backing.
CVC has been a prolific investor not only in European football but in sports in general. The Luxembourg-based firm, which has previously secured investment in the Six Nation rugby tournament and Formula One motorsport, also secured a €2.7 billion media rights deal with Spain’s La Liga league in 2021.
CVC did not respond to requests for comment.
French Football Ligue President Vincent Labrune leaves the French Football Federation headquarters in Paris on Jan. 11, 2023. / THOMAS SAMSON/AFP via Getty Images
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