French league obtains $246 million loan to cover losses from TV deal

Clubs in France's Ligue 1 and Ligue 2 breathed a little easier after the French League (LFP) obtained a government-guaranteed loan worth 225 million euros ($246 million) to carry them through June.

The loan compensated clubs for lost income from the television deal with Canal-Plus and beIN Sport after the French government's decision to shut down pro sports for the rest of the 2019-20 season because of the COV1D-19 pandemic. Ten games were remaining in Ligue 1.

The LFP had already reached a settlement with Canal-Plus and beIN Sport on the unpaid amount of the final payment the networks withheld that related to games already played. Clubs are paid sums based on a formula that takes into account in part its record and its TV appearances.

The bank loan, part of a French government program to aid industries impacted by the pandemic, will ptovide French clubs with short-term help with their cash flow. The 40 teams in Ligue 1 and Ligue 2 are facing losses of 650 euros ($709 million) because of the pandemic.

Spain's Mediapro will carry the bulk of the games next season under terms a deal paying a record 1.15 billion euros ($1.25 billion) per season. The LFP hopes to start next season (without fans) in August.
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