With the difficulties of Mediapro, French football faced with the fear of heights

DECRYPTION

French football is on the verge of a new nervous breakdown.

In question: the difficulties of Mediapro, the new broadcaster of Ligue 1 and Ligue 2 since this summer.

The Sino-Spanish group, which bought the TV rights to L1 for 780 million euros per season and L2 for 34 million per year, already wants to renegotiate downward due to the coronavirus pandemic.

"We want to discuss the contract for this season again. She is very affected by the Covid-19, everyone knows it because everyone is suffering. We want to renegotiate the price," said Jaume Roures, the boss of Mediapro, in a interview given to

on Thursday.  

This new rebound could plunge French football, already in great difficulty because of the pandemic, into a deep financial crisis.

Europe 1 deciphers the potentially devastating consequences of a drop in TV rights on Ligue 1 and Ligue 2.

>> EDITORIAL

- The entire economic model of football is on the verge of explosion

Mediapro, a struggling broadcaster

To make a return on its enormous investment, which amounts to more than 800 million euros per year, Mediapro has counted on a very ambitious business plan: to eventually reach 3.5 million subscribers to its Téléfoot channel.

But according to the first figures which have filtered through the press, the Sino-Spanish group is far ... from a million subscribers.

Mediapro has not released any figures for the moment, but James Roures admitted in

: subscriptions are "lukewarm".

"The situation is more complicated than imagined two years ago when we acquired the rights," he lamented.

Because for the moment, Mediapro and its Telefoot channel have not succeeded in seducing football fans.

In question: the amount of the subscription, which amounts to 25.90 euros per month for the standard offer with a one-year commitment, or 29.90 euros per month without commitment, as well as large bugs on the dedicated application when it was launched at the end of August.

Partnerships have also been forged with Orange, Free, Bouygues Telecom, SFR and even Netflix, but this strategy does not seem to be working for the moment.

However, the health of Mediapro will depend a large part of the future of French football.

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Dependence on TV rights further reinforced by the coronavirus

Historically, French football has always been very dependent on the amounts paid by television channels.

In 2018-2019, TV rights represented 48% of club revenue, excluding transfers.

Problem: this dependence has been further accentuated by the coronavirus pandemic.

With the shutdown of last season and the absence of an audience in the stadiums, French clubs have lost tens of millions of euros, forcing the Professional Football League (LFP) to take out a loan guaranteed by the State of 'an amount estimated at 225 million euros to compensate for the shortfall in TV rights.

The specter of a "generalized bankruptcy" 

The arrival of Mediapro therefore resembled a balloon of oxygen for the clubs of Ligue 1 and Ligue 2. But a renegotiation of lower TV rights could have dramatic consequences.

"If it came either through a breach of the contract or a drop in its value, in any case the clubs, already losing with the economic crisis, would be in a catastrophic situation. They have spread their accounts on potential revenue up to TV rights of 1.153 billion euros, with player contracts signed until 2023 or 2024. If, tomorrow, they no longer have the expected money, it is bankruptcy, bankruptcy, generalized bankruptcy " , was alarmed the economist of sport Pierre Rondeau on Twitter.

So, after this demonstration by the French team against the Ukrainian C team, we learn that Mediapro is asking for 1 renegotiation of the TV rights contract # L1, which normally runs until 2024

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- Pierre Rondeau (@Lasciencedufoot) October 7, 2020

Faced with this explosive situation, will the Pro Football League (LFP) agree to renegotiate TV rights or engage in a standoff with Mediapro?

"The League agrees to sit around a table to talk about this subject. We will see how it will end," assured Jaume Roures, who does not minimize the potential consequences for French football.

"In the current situation, everyone is worried."