Sogecable guarantees broadcast of Football League to all subscribers

Given the uncertainty created by some media regarding the future of football-broadcast rights, Sogecable wishes to stress that all subscribers to Canal + and Canal + Liga are guaranteed the broadcast of next season's Premier and Second division league matches.

Sogecable reiterates once again that it intends to fulfill the contract signed with Mediapro in June 2009, as well as with all payment commitments, as it has done thus far, if Mediapro can provide a bank guarantee or other security or warranty.

Sogecable, aware of imminent insolvency threatening Mediapro, has requested this exceptional guarantee in order to ensure that the 90 million euros that Sogecable must deliver to Mediapro as the first payment for broadcasting rights for next season goes towards the advances required by the football clubs. Especially in light of the fact that this company has just filed for bankruptcy protection.

Sogecable has demanded this measure out of pure business prudence, given that there exists a court order requiring Mediapro to return to Audiovisual Sport (AVS) all those rights regarding football clubs that were usurped illegally. This would thus significantly modify the conditions of the model for football-broadcast rights. 80% of AVS is held by Sogecable and 20% is held by Televisión de Catalunya.

The above-mentioned court order also requires Mediapro to pay 105 million euros to Sogecable for serious breaches of the previous contract governing football-broadcast rights, signed in July 2006.

It was precisely the payment of those 105 million euros that prompted Mediapro to file for bankruptcy protection and not the alleged default in payments by Sogecable, which Mediapro falsely attributed yesterday through an official press statement.

In the documents submitted yesterday, June 16, before the Commercial Court of Barcelona to apply for bankruptcy protection, Mediapro recognizes literally, that "therefore, the main cause behind Mediapro's imminent insolvency is the execution of a court ruling, which requires the Company to pay EUR 104 million euros immediately as a result of existing litigation with AVS regarding media-broadcast-rights for the Professional Football League. "

Source: Sogecable