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Spanish football rights holder Mediapro has filed for bankruptcy protection, blaming paycaster Sogecable, and putting coverage of the Spanish football league at risk.
The company has been in dispute with Sogecable, the Prisa-controlled company that runs the Digital+ satellite platform and the Canal+ premium channels in Spain, and in March was ordered to pay €97 million in a breach of contract dispute with Sogecable-backed Audiovisual Sport (AVS).
“The decision taken by Sogecable to not comply with their payment obligations corresponding to the contract for broadcasting rights of the Spanish football league (la Liga), has prompted circumstances which may force Mediaproduccion S.L. into a situation of a cash-flow imbalance,” said a Mediapro statement. “Faced with this possibility and grounded in a basic sense of prudence, Mediaproduccion S.L. has decided, to request judicial protection through a voluntary insolvency proceeding, in order to reach an agreement about the creditors.”
According to Mediapro, Canal will not be able to screen future games from La Liga.
It says the decision to apply for a voluntary creditor’s meeting does not call into question the viability of the company and is entirely down to its dispute with Sogecable.
The company has been in dispute with Sogecable, the Prisa-controlled company that runs the Digital+ satellite platform and the Canal+ premium channels in Spain, and in March was ordered to pay €97 million in a breach of contract dispute with Sogecable-backed Audiovisual Sport (AVS).
“The decision taken by Sogecable to not comply with their payment obligations corresponding to the contract for broadcasting rights of the Spanish football league (la Liga), has prompted circumstances which may force Mediaproduccion S.L. into a situation of a cash-flow imbalance,” said a Mediapro statement. “Faced with this possibility and grounded in a basic sense of prudence, Mediaproduccion S.L. has decided, to request judicial protection through a voluntary insolvency proceeding, in order to reach an agreement about the creditors.”
According to Mediapro, Canal will not be able to screen future games from La Liga.
It says the decision to apply for a voluntary creditor’s meeting does not call into question the viability of the company and is entirely down to its dispute with Sogecable.