French League to take out loan to reimburse lost TV revenues for clubs

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The French professional league (LFP) confirmed Monday that a state-guaranteed loan would be taken out to compensate clubs the amount they were set to receive from broadcasters prior to the cancellation of the 2019-20 season.

The LFP, which governs the top two tiers of French football, released a statement, saying: "At a meeting on May 4, the LFP's general assembly adopted a resolution permitting the LFP to contract a state-guaranteed loan (PGE) from its banking establishment."

On Thursday, the LFP ended the Ligue 1 and Ligue 2 campaigns as the coronavirus pandemic continued to wreak havoc across France. Clubs are due to experience massive revenue losses from the lack of matchday proceeds, and also from an absence of television dividends due to be paid April 5 and June 5.

Broadcasters BeIN Sport and Canal Plus both withheld the latest payment to clubs, prompting discussions between the pair, three club presidents, and the LFP to resolve the matter.

BeIN refused to reward a €42-million installment to the LFP for the rights to broadcast matches after Canal Plus confirmed it would not pay €110 million due this month.

The LFP has taken matters into its own hands to "help to support the cash flow of Ligue 1 and Ligue 2 clubs."

"Thanks to this loan, the LFP will be able to pay the Ligue 1 and Ligue 2 clubs all of the sums still to be collected for audiovisual rights for the 2019-2020 season," the LFP added.