Joye Media SL signed a guarantee with the LFP – what this means
L’Équipe report that the LFP have seized the Court of Commerce in Paris to force Joye Media SL, the parent company of French football broadcaster Mediapro, to pay after the firm refused to make a €172m payment due on October 5th, just 2 months after the 4 year, €1.15bn a year broadcasting deal began.
The newspaper reveals that Joye Media SL signed a “solidarity guarantee,” which obliges it to cover unpaid payments by its subsidiary, but also all costs and interest, with the LFP, on 26th November 2018, six months after the tender for the next major French football broadcasting contract. In the contract, Joye Media bosses Jaume Roures and Tatxo Benet have their signatures as the guarantors, whilst ex-LFP CEO Didier Quillot is down as the beneficiary.
This six-page contract details the obligations of Joye Media SL, who must cover Mediapro Sport Francia in the event that its subsidiary goes bankrupt. Joye Media SL have to make all the payments due by Mediapro if the latter cannot to do so, which is €780m per season, thus a total of €3.12bn.
The exact clause reads as follows for what Joye Media SL must cover: “obligations of payment, reimbursements, interest, interest on arrears, fees, commissions, expenses of any amount and of any what kind.”
With business interests across Europe and Spain and an annual revenue of around €2bn, Joye Media SL must now respond to the LFP’s legitimate request, but they do not seem to be in any hurry.
The LFP has thus been forced to take out an additional €120m loan and use €50m of its own funds to distribute the money that clubs were waiting for on October 5th. This decision by LFP bosses is due to be validated by the LFP General Assembly on Monday.
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