Mediapro applies for bankruptcy protection

[satandpcguy]

Mediapro, who own the rights for all of the Spanish La Liga and 2nd Division clubs has has asked for a ‘concurso de acreedores’ or bankruptcy protection.

They were to be paid €90 million today from Sogecable/Digital+ in the first installment for the rights to show La Liga on Canal+, Canal+ Liga and PPV on Digital+ for the 2010/11 season. Sogecable/D+ have told Mediapro they will not be paying the money until Mediapro pays Digital+ €97 million won by Digital+ in a court case regarding a breach of contract signed in 2006 regarding football rights. Mediapro also owes €105million in costs over this court case.

Because of this Mediapro have had to file for bankrupcy due to cashflow issues. Mediapro also own Gol TV Spain, La Sexta and the rights to F1 in Spain. Their biggest creditors are La Liga clubs though.

A press release from Mediapro on Wednesday said that the company would continue to administer the rights of the Spanish league ‘with total normality’, and underlined that the application for bankruptcy protection did not put the profitability or viability of the company in doubt. The statement said they had taken the step out of basic sense of prudence.

If the situation continues as it is, Digital+ may not be able to show La Liga on Canal+ and Canal+ Liga next season. They do have rights for the English Premier League shared with Mediapro however.

All this means a 3rd summer in a row of Spanish football fans not knowing what will happen to La Liga when the season starts.

There has been an ongoing war between the two media groups over the TV rights in Spain for some years.

[satandpcguy]

Spanish pay-TV operator Sogecable will have complete access to the country’s top flight football after a Madrid court told rights agency Mediapro to hand back the broadcast rights to first and second divisions. It was also ordered to pay Sogecable €105 million and a potential €31 million to cover interest and cost while the ruling goes through the judicial system.

The court has also ordered current accounts to be frozen and a hold placed on Mediapro shares in companies including Gol TV and GAMP, which controls TV channel La Sexta.

In requiring Mediapro to return all the contracts it manages on behalf of football clubs Sogecable, operator of the Digital+ pay-TV package and the Canal+ brand in Spain, becomes the rights holder to the matches from June 21 and into next season.

The ruling made public yesterday (June 24) is dated June 21, one day before the Commercial Court No. 7 in Barcelona granted Mediaproducción SLU’s (Mediapro) request for insolvency protection.

source:broadbandtvnews