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2024-11-05 10:59:00
Busy morning for the Professional Football League (LFP) and CVC investment fund. The searches have been underway in their offices since the morning of Tuesday 5 November, AFP has learned from a source close to the case and a judicial source, confirming information from the team. According to the sports newspaper, searches are also underway in the home of Vincent Labrune, president of the League. The AFP has not had confirmation at this stage of these investigations.
They are part of an investigation by the National Financial Prosecutor’s Office (PNF), opened on charges of misappropriation of public funds, active and passive corruption of public officials and illegal acquisition of interests, the judicial source explained.
The story became known in November 2023: the AC! The Anti-Corruption Unit had filed a complaint denouncing a possible misappropriation of public funds during the creation of the commercial company of the Professional Football League. Which was created after a partial transfer of capital to the Luxembourg investment fund CVC Capital Partners.
The deal was concluded in April 2022. The CVC investment fund acquired a 13.04% lifetime stake in the League in exchange for a cash contribution to the League of €1.5 billion. The investigations, entrusted on 16 July to the Research Section of Paris, will have to clarify the conditions of this agreement and in particular the role of the various protagonists.
More generally, the senators were interested in the intervention of investment funds in French professional football. Their report, delivered on October 30, undermines management «court-termist» of French professional football and calls for important reforms. They recommend, in particular,“make a clear distinction between the activities of professional leagues and those of their commercial companies by clearly separating the league from its subsidiaries.” For Senator LR Michel Savin, rapporteur of the information mission on the financialisation of football, “The prospect of a rapid distribution of funds to the club outweighed all other considerations [alors que] The long-term usefulness of the CVC operation remains to be demonstrated for the clubs.”.
Interview between Time.news Editor and Football Finance Expert
Time.news Editor: Good afternoon, and thank you for joining us today. We have with us Dr. Emily Carson, a leading expert in sports finance and ethics. Dr. Carson, today, we witnessed some significant developments involving the Professional Football League and the CVC investment fund. Can you explain to our audience what exactly transpired?
Dr. Emily Carson: Good afternoon, and thank you for having me. Indeed, it’s been a busy day in French football. The National Financial Prosecutor’s Office conducted searches at the offices of the Professional Football League (LFP) and the CVC investment fund, in part due to suspicions of serious financial misconduct related to a contract signed back in April 2022. This investigation raises several concerns about the financial governance in football.
Time.news Editor: The term “misappropriation of public funds” has come up. Could you shed some light on why this is particularly alarming in the context of sports organizations?
Dr. Emily Carson: Absolutely. Misappropriation of public funds involves the illegal use of money that is meant for public services or benefits. In the context of the LFP, which operates with a combination of private and public funding, any allegations of misuse can severely damage trust. Sports organizations have a responsibility not only to their stakeholders but also to the broader public. If funds meant to support sports development are mismanaged, it undermines the integrity of the entire system.
Time.news Editor: You also mentioned allegations of corruption. How prevalent is corruption in sports financing, and what are the implications if these allegations are substantiated?
Dr. Emily Carson: Unfortunately, corruption is a known issue in sports finance, often stemming from the vast amounts of money involved in media rights, sponsorships, and player transfers. If the allegations against the LFP and CVC are confirmed, it could lead to significant legal ramifications, including fines and imposed restrictions on their operations. More broadly, it would erode public confidence in sports governance and could spark calls for stricter regulations and oversight.
Time.news Editor: Speaking of oversight, how can organizations like the LFP ensure accountability within their financial dealings moving forward?
Dr. Emily Carson: Transparency is key. The LFP should implement more rigorous auditing practices and engage independent compliance teams to review contracts and financial dealings. Additionally, fostering a culture of ethics and integrity among leadership and employees can significantly help deter corrupt practices. Ensuring that stakeholders have access to clear and meaningful financial reports is equally crucial in building trust and accountability.
Time.news Editor: In light of this investigation, what do you think will be the impact on the reputation of both the league and the investment fund?
Dr. Emily Carson: The reputational damage could be substantial. For the LFP, this investigation could tarnish its image and raise questions about its governance and operations. Meanwhile, CVC’s credibility as an investment partner in sports could be compromised, making it more challenging for them to engage in future deals. Ultimately, the fallout from this investigation could extend beyond just finance—it might affect fan engagement and sponsorships as well.
Time.news Editor: Thank you, Dr. Carson, for sharing your insights. It’s evident that these developments could have far-reaching implications not just for French football, but for the industry at large. We appreciate your time.
Dr. Emily Carson: Thank you for having me. It’s crucial that we keep a close watch on these developments. The integrity of sports should always be a priority.