Telemadrid and Caja Madrid lost 57 million for the rights to broadcast football matches

The company Madrid Deporte Audiovisual (MDA) created in 2007 by Telemadrid and Caja Madrid to exploit the audiovisual rights of the football teams of the first division


Madrid

Telemadrid building in the City of the Image. EM

The operation benefited Atl├ętico de Madrid and Getafe

Cs would have the key of the Government in Madrid according to a Telemadrid survey

The company Madrid Deporte Audiovisual (MDA) created in 2007 by Telemadrid and Caja Madrid to exploit the audiovisual rights of the football teams of Madrid's first division lost was a failure and lost more than 57 million euros , according to a report from the Chamber of Accounts of the Community of Madrid advanced by 'El Confidencial'.

The objective of the constitution of the MDA company was to broadcast these clubs' matches in an open manner. However, the operating rules of the market, existing before its constitution, did not allow to satisfy that need with the first signed contracts , since the official parties did not arrive to emit. Only as of 2010, a match could be broadcast simultaneously with another chain, which was due to a new acquisition.

The creation of MDA was based on a business plan prepared by Caja Madrid, noting positions found in the Board session, despite which said Plan was approved. Simultaneously to its constitution, MDA signed four fundamental contracts with Atl├ętico de Madrid and Getafe , since Real Madrid did not want to be.

With each of the clubs he signed a contract for the official matches (270 million euros for the two clubs together) and another for the friendly matches and advertising rights (36 million). At the time of signing these contracts, although there was no binding legal rule, " the criteria of the competition authorities were already known by the parties and were not taken into account," the Chamber of Accounts has highlighted. .

By not reaching any agreement with other operators to exploit the acquired rights, MDA could have resolved the signed contracts and sought contractual rebalancing. But, according to the inspecting entity, instead it sold those rights to another operator (January 20, 2010), "without any benefit for MDA, but assuming the risk of both operations."

In this same contract, MDA acquired to said operator rights for the retransmission of a league match per season in concurrence with another chain (linked to the aforementioned operator), for which a price of 85 million was fixed . These matches were sold by MDA to Telemadrid for the same price.

After a sanctioning process, the contracts were declared contrary to the Law on the Defense of Competition, by exceeding the duration of three seasons, resolving the contracts in advance. In fiscal year 2012, once all the acquired parties were issued, the operator interrupted payments due to Madrid Deporte Audiovisual.

After different judicial processes, this operation supposed the loss of 25.5 million euros for MDA, "that did not manage to collect". The company also lost money by not recovering eight million of all the advances to the clubs, which would have to include the interest accrued up to the time of collection, as well as the court costs that were assumed by MDA.

The purchase of the friendly matches and advertising rights was a loss for Madrid Audiovisual Audio of 24 million euros, "by not commercializing almost all of these friendly matches, or make use of advertising rights."

Telemadrid registered contributions to MDA for a total of 17.6 million euros, which constituted a loss in its entirety. In turn, it paid the company 49.3 million for rights of sports broadcasts previously acquired.

Therefore, the Chamber of Accounts of the Community of Madrid notes that the constitution of MDA economically damaged Caja Madrid and Telemadrid , but benefited football teams, "who obtained funding through the transfer of the exploitation of their rights audiovisual, as well as the aforementioned operator, who was able to issue the official matches, leaving a good part of the amount unpaid. "

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REF: https://www.elmundo.es/madrid/2019/01/24/5c499c3e21efa0a8348b45fb.html