November 28, 2024
CVC Office Searched in French Football Deal Corruption Probe #FrenchFinance

CVC Office Searched in French Football Deal Corruption Probe #FrenchFinance

CashNews.co

(Bloomberg) — French financial prosecutors searched the offices of private equity firm CVC Capital Partners and France’s football governing body on Tuesday as part of an investigation into possible corruption.

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The probe follows a complaint filed almost a year ago by anti-corruption association AC !! relating to a deal between the Ligue de Football Professionnel and CVC, according to a justice ministry official.

Under the agreement announced in April 2022, CVC agreed to take a 13% stake in the commercial subsidiary of the league, LFP Media, in return for an investment of €1.5 billion ($1.6 billion) at a time when French football was struggling with a failed broadcasting contract.

The unit is responsible for marketing the TV rights for France’s professional football leagues. France’s Senate also held an inquiry into the deal this year.

Financial prosecutors are carrying out an investigation into possible misuse of public funds, corruption of a public official and unlawful conflict of interest, according to the official, who spoke on condition of anonymity discussing a private matter.

CVC declined to comment.

The LFP “is cooperating in full transparency with judicial authorities to provide all the information required for the ongoing investigation,” it said in an emailed statement. “The league’s actions have always been guided by a deep commitment to French soccer, in full compliance with the rules.”

–With assistance from Benoit Berthelot and Gaspard Sebag.

(Adds comment from the LFP in seventh paragraph.)

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