Entertainment TV rights in Ligue 1. Moody’s further downgrades Mediapro's rating

23:25  22 october  2020
23:25  22 october  2020 Source:   ouest-france.fr

Lille beat Nantes 2-0 to go top in Ligue 1

  Lille beat Nantes 2-0 to go top in Ligue 1 Lille beat Nantes 2-0 to go top in Ligue 1Defender Nicolas Pallois deflected a Mehmet Celik strike into his own net and Burak Yilmaz converted a second-half spot kick, putting Lille on 11 points from five games.

La note financière de Mediapro de nouveau baissée par l’agence Moody’s. © REUTERS Mediapro’s financial rating again downgraded by Moody’s agency.

Credit rating agency Moody’s has downgraded Mediapro even further because of its difficulties in paying TV rights to Ligue 1, the French football championship.

The financial rating agency Moody's announced on Thursday that it had once again lowered the rating assigned to the financial situation of the Sino-Spanish group Mediapro, due to its difficulties in honoring the payment of rights to the French Football Championship (Ligue 1 ).

The rating of Joye Media, a Spanish holding of Mediapro whose majority shareholder is the Chinese fund Orient Hontai Capital, was downgraded by one notch, from B3 to Caa1, which corresponds to a very high risk of non-repayment of credits, according to Moody's scale.

TV rights: the refusal of the LFP to Mediapro for a payment period

 TV rights: the refusal of the LFP to Mediapro for a payment period © Panoramic The Professional Football League (LFP) confirmed on Thursday that it refused to grant its major broadcaster Mediapro a payment period for the October deadline for televised rights to the Ligue 1 and Ligue 2 championships. "The priority of the LFP is now to be able to ensure the payment to clubs of the due date on October 17, 2020", amount estimated at 172 million euros according to the daily L'Equipe, explained the LFP in a press release.

To make its decision, the rating agency took into account the missed payment to the French football league and (of) the difficulty in making profitable the rights of French football with the number of current subscribers, explains in the press release. analyst Victor Garcia Capdevila.

Mediapro did not pay the 172 million euros due to the Professional Football League (LFP) at the beginning of October and asked to renegotiate for this season the amount of the television rights of the championship, acquired in 2018 for more than 800 million euros.

> READ ALSO: "If Mediapro does not pay, the League will launch a call for tenders"

French football shaken

Moody's gives the rating a negative outlook, which means that the agency plans to lower it again if the situation does not improve.

Longuépée on Mediapro: "Concern for many presidents"

 Longuépée on Mediapro: © Provided by Sofoot Fear of the League. While the president of Mediapro, Jaume Roures, wishes to renegotiate the contract for the TV rights for this season, the LFP has shown firmness in pushing back the request for a payment deadline for the October deadline. The situation still has cause for concern for French football players, already weakened by the coronavirus pandemic.

The recent developments in the case in France are negative for the company's reputation and could lead to lengthy legal proceedings and possible payments of financial compensation which risk further weakening its financial situation, already weak due to the impact of the coronavirus pandemic, adds the analyst.

Moody’s points out that the group's cash position, which had 143 million euros in cash at the end of June, is fragile.

Mediapro boss Jaume Roures, claims 600,000 subscribers to Telefoot , the channel created to broadcast matches, while the stated goal is to eventually reach 3.5 million customers. The dispute shook the entire economy of French football as professional clubs derive on average a third of their income from TV rights.

Mediapro asks for a 25% rebate .
© Supplied by Sofoot Place your bets, nothing is going well. In the midst of a scandal, Mediapro adds another layer. While the LFP lodged a complaint against the Sino-Spanish group in October, the two parties are currently in the midst of negotiations, according to an article by Team . As a reminder, Mediapro had obtained the rights to L1 and L2 for four years against 820 million euros per year.

usr: 4
This is interesting!