A report from L’Equipe insists that Professional Football League in France (LFP) is planning to take a loan to pay Ligue 1 and Ligue 2 clubs after Mediapro, the domestic broadcaster, didn’t pay the latest installment of €172 million.
LFP is currently searching for a bank that could sanction a loan to pay the clubs as the 2020/21 campaign has already underway. The Federation had already taken a government loan to offset losses due to the pandemic.
Vincent Labrune, LFP President, told L’Equipe that the federation is working hard to find a solution to this problem. He also admitted that Mediapro’s public statement to back out from making the payment as a surprise to LFP.
It is widely reported in French media that Mediapro has taken this step to support the idea of renegotiating the TV rights deal with LFP.
French clubs have found themselves in a mix after the last campaign was abruptly ended due to the pandemic, which has affected the payments from French and foreign broadcaster.
The broadcast revenue is essential for numerous clubs in France. The immature decision to suspend last season has cost millions for every club in Ligue 1. Paris- Saint Germain will be able to withstand such a financial crisis since they have the backing of rich owners, but other clubs rely on broadcast revenue to survive. It will be a sigh of relief for these clubs if LFP manages to acquire a loan to pay the dues.