Private equity firm, CVC Capital Partners, is reportedly set to take a 13% stake in top-flight French football league, Ligue 1’s new commercial arm, worth €1.5 billion (AUD$2.2 billion).

The investment has now been approved by the league and its clubs, as well as clubs from the second tier of French football, and will value the league’s commercial arm at €11.5 billion (AUD$16.9 billion).

Several reports have suggested the Professional Football League (LFP) will receive an initial €600 million (AUD$882 million) in July, with the clubs to receive distribution based on their commercial appeal.

This means Paris Saint-Germain (PSG) will receive €200 million (AUD$294 million) of the total investment, while Olympique de Marseille and Olympique Lyonnais will both receive €90 million (AUD$132 million) each, before being gradually handed out across the rest of the league.

The entire investment will be paid out over the course of three years, with the LFP to use the immediate funds in July to pay off a €170 million (AUD$250 million) state loan taken out due to the financial troubles caused by the COVID-19 pandemic, as well as €100 million (AUD$147 million) placed into a reserve fund, and €100 million used for the operating costs of the commercial arm.

The new commercial arm is expected to market the league’s television and online broadcast rights.

The deal sees Ligue 1 join other major sporting competitions around the world utilising private equity investment, joining LaLiga, Serie A, New Zealand Rugby, and Six Nations Rugby.

The rise of private equity investment in sport has raised concerns from some in the industry due to the often-lengthy commitments which can sometimes not accurately account for inflation and the increased value of broadcast rights.