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Coronavirus updates: TV company witholding rights fees to French Ligue 1 while it's suspended

By Sporting Life
Football
Wed April 01, 2020 · 5y ago

The French Ligue 1 is reportedly facing losing TV rights payments due to the competition being suspended over the coronavirus pandemic.

It could be the start of a worrying trend for organisers of other major sporting events if TV companies are going to start either witholding fees until matches are eventually played or even asking for refunds if events are cancelled permanently.

According to the PA news agency, the beIN Media Group is withholding payment for rights to show the French Ligue 1 because no games are currently being played.

The move by beIN SPORTS, part of the beIN Media Group, follows a similar decision by Canal Plus, which comes on the back of an extension of the lockdown in France designed to limit the spread of the coronavirus.

Streaming company DAZN is reported to have told leagues it holds rights for that it will not pay for any cancelled fixtures, while the Nordic Entertainment Group (Nent) has said it will not report media rights costs for postponed sporting events in its income statement until such time as the events take place.

BeIN SPORTS's four-year deal for Ligue 1 rights in France expires at the end of this season.

In a legal letter seen by the PA news agency, the chief executive of beIN SPORTS France Yousef Al Obaidly said the decision not to make the next payment due to be made to Ligue de Football Professionnel on April 5 "mainly takes into consideration the total lack of real visibility on the actual resumption of matches in the current season".

Al Obaidly added that the situation "has just been aggravated by the decision to maintain confinement for an additional period of two weeks".

The last matches in Ligue 1 were played on March 16.

It is a worrying development from a Premier League perspective, which is reported to face a £750million loss if it is unable to fulfil the remaining 2019-20 fixtures.

The lockdown in the UK began last week, and was set to last for an initial three-week period before being reviewed.

The chairman of the beIN Media Group, Nasser Al Khelaifi, is also president of Ligue 1 leaders Paris St Germain but the two businesses are entirely separate.

BeIN SPORTS also holds the Ligue 1 rights in a number of other territories, but the withheld payment relates solely to its rights to screen the competition in France.

National associations across Europe gathered for a video conference call on Wednesday to hear an update from a working group looking at how 2019-20 fixtures could be completed.

The PA news agency understands competitions across the continent are creating the conditions for action to take place into July and August, mindful of the need to fulfil broadcasting deals.

The beIN Media Group has invested 15 billion US dollars (just over £12bn) in sports rights globally.

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