I ran a sports streaming service ("pirated sports streaming service" ?). The US Government said I was making $250k MRR as a solo indie dev (I wasn't, but that's great validation). I'm pretty qualified to talk about this.
The shitty part about what Spain is doing is that it punishes its own residents who have nothing to do with piracy.
Sports piracy is fundamentally different than music or movie piracy. The Spotify analogy that gets tossed around is wrong. Steam is less wrong but still wrong. Music piracy got "solved" because the labels decided that some revenue was better than no revenue, and the math works when you have a bunch of product in your back pocket that cost you nothing to distribute; gaben made piracy slightly less convenient to those in developed countries.
Sports rights are valuable because they're exclusive and because they're live. In the US, there are blackouts around sports: if you're physically located in New York (at least, according to whatever IP address data vendor a platform is using), you're unable to watch the New York Knicks using league-sanctioned products. That's the US version of this—restricting access to the content itself to protect the rights holder's revenue. It's internal logic and fundamentally sound (though infuriating) if you're one of them.
This is without a doubt categorically worse. A blackout says "you can't watch this game" and Spain is saying "you can't access the internet while this game is on, whether you're interested in the game or not." It's as if the NBA convinced the DOJ to shut down half the internet every time a game was on, just in case.
Before it was DMCA notices (useless) -> lawsuits (whack-a-mole, check TorrentFreak) -> ??? -> infrastructure-level blocking. (I'm an outlier for many reasons but we won't go into those.) Each step is more destructive and less effective than the one preceding it. Spain has reached the end of the playbook, thanks to political interests: ban the internet!
Fans are the product. La Liga's real customer is Movistar, who pays roughly a billion euros a year for exclusivity so they can bundle it into packages nobody would pay for otherwise. The IP blocking isn't an anti-piracy measure—I'd argue there is no such thing as anti-piracy but that's a different thread. The IP blocking is a signal to the next bidder: the government will protect your exclusivity at any cost, even if that cost is the country's internet.