Why Mediapro continues to broadcast Ligue 1 despite its late payments

INTERVIEW

Mediapro, which bought the broadcasting rights for Ligue 1 and Ligue 2 matches at a high price, has until Friday to pay the Professional Football League (LFP) the 150 million euros it must every two months.

But the October transfer still hasn't arrived. 

Christophe Lepetit, head of economic studies at the Center for Law and Economy of Sport (CDES) explains in 

why this imbroglio is dragging on, while Mediapro had won most of the rights to French football for more than 800 million dollars. euros per year. 

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A procedure that slows down the outcome

If Mediapro's money does not go into the LFP's coffers, the media company continues to broadcast the matches on its

channel

.

"Despite everything, Mediapro has a contract with the LFP", recalls Christophe Lepetit, head of economic studies at CDES.

However, legal proceedings are underway regarding this contract, preventing it from being terminated for the moment. 

"The conciliation procedure which was initiated before the commercial court of Nanterre delays the possibility for the Professional Football League to possibly recover its rights, and to put them back on the market or to pay them to such or such television operator" , he explains.

Despite its late payment, Mediapro can therefore continue to rely on its contract and continue to broadcast the matches to its subscribers (less than 500,000 according to several media, on a goal of more than three million in the long term ...), the number of which remains largely insufficient to allow it to pay the amounts due to the LFP.

"Which is quite ubiquitous", comments Christophe Lepetit.

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A health argument that does not hold

Mediapro refuses to explain its late payments by its lower number of subscribers than expected.

For the audiovisual group, it is the context of the health crisis that is in question.

An argument that appears "not at all" admissible in the eyes of the expert from the Center for Law and Economy of Sport.

"It is obvious that the COvid-19 epidemic has degraded the general quality of football, at European and even world level," he admits.

"Despite everything, unlike the end of the 2019-2020 season, the matches are being played. So the services listed in the contract are provided by the LFP. We therefore cannot really accede to this argument of Mediapro."

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The survival of clubs hangs in the balance

The situation seriously endangers the clubs, which live largely off TV rights, in a context where they no longer receive the money from the ticket office, the matches being held without an audience.

"The clubs are worried, and some even fear for their sustainability", explains Christophe Lepetit.

For the specialist, some clubs may not survive if the standoff between Mediapro and the LFP continues.

"In the worst case, we can have insolvencies from certain clubs, whether or not Mediapro pays what it owes," he explains.

"And also depending on whether the LFP manages to find a replacement diffuser".

Canal +

, historic broadcaster, could play the savior.

But the group has already announced that it will not do so on the model of the contract signed with Mediapro.

And should, no doubt, pay a much lower amount.