Ligue 1: After collapse of mega TV deal, clubs hope for rescue from financial woes with new tender

The reports suggest that clubs in Ligue 1 were set to suffer combined losses of over 1.3 billion euros this season.

Agence France-Presse January 29, 2021 09:47:07 IST
Ligue 1: After collapse of mega TV deal, clubs hope for rescue from financial woes with new tender

It is being reported that clubs in Ligue 1 are set to suffer combined losses of over 1.3 billion euros this season. AP

Left in dire straits by the disastrous combination of the COVID-19 crisis and the collapse of a record TV rights deal, clubs in France's Ligue 1 are hoping a new broadcast partner can be found next week in order to pull them back from the financial brink.

The French league (LFP) will on Monday put out to tender the domestic broadcast rights to Ligue 1 and Ligue 2 that had been sold to Mediapro -- a Spanish company controlled by a Chinese investment fund -- for 780 million euros ($946m) a season for the four years to 2024.

When the deal was signed, French clubs rejoiced. It accounted for 80 percent of all domestic rights. Together with the remaining 20 percent, they were looking at a combined 1.15 billion euros annually, comparable with Germany, Spain and Italy if not the Premier League.

Then came the pandemic, which led to a premature end to last season -- Europe's other major leagues, in contrast, eventually restarted -- and has seen supporters almost completely locked out this season, wiping out gate receipts.

Then, in October, Mediapro failed to meet a deadline to pay a 172 million-euro chunk of the contract. In December the LFP terminated the agreement, and now they are hoping to be rescued by a new offer.

It seems Canal Plus and Qatar's beIN Sports are the only possible contenders to save the day, but Canal Plus already pays 330 million euros a year for 20 percent of the rights, an agreement it wants to rip up and also have put out to tender again.

This week sources close to the LFP said clubs in Ligue 1 were set to suffer combined losses of over 1.3 billion euros this season.

Much of the projected losses look set to be absorbed by Paris Saint-Germain, with sports daily L'Equipe last week reporting the reigning champions were braced for a 204 million-euro black hole.

Not all clubs in France can lean on mega-rich owners from Qatar though -- the rest of Ligue 1 relies heavily on an ability to sell players to the Premier League or elsewhere. And yet the transfer market is depressed because of the pandemic.

Marseille this week sold midfielder Morgan Sanson to Aston Villa for a reported £15.5 million ($21.2m) but such deals are rare.

To top it all there are the growing noises of a breakaway European Super League which could turn the heads of PSG.

The outlook is extremely uncertain for the French game.

 

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Ligue 1: Jorge Sampaoli named new coach of Marseille, signs contract until June 2023
Sports

Ligue 1: Jorge Sampaoli named new coach of Marseille, signs contract until June 2023

The 60-year-old is a former Chile, Argentina and Sevilla coach. He has signed a contract with Marseille until June 2023.

Champions League: Barcelona's Gerard Pique doubtful for PSG clash after picking up knee injury
Sports

Champions League: Barcelona's Gerard Pique doubtful for PSG clash after picking up knee injury

Pique has just returned from three months out due to a partial cruciate ligament injury in the same right knee.

Premier League: Chelsea boss Thomas Tuchel urges Tammy Abraham to fight for place in squad
Sports

Premier League: Chelsea boss Thomas Tuchel urges Tammy Abraham to fight for place in squad

Abraham, who has scored 12 goals in 30 appearances for Chelsea this season, was also substituted at half-time against Southampton the previous week.