Soccer b’cast flare-up in France
November 19, 2002 - The Hollywood Reporter
PARIS—Fallout from Canal Plus’ monster €430 million ($433 million) winning bid for the annual French Ligue 1 soccer broadcast rights has begun, with French digital satellite platform TPS, a rival bidder, taking legal steps to halt the deal and the French culture minister issuing a warning.
TPS filed a claim Monday with the French antitrust council and plans to file several more this week at the European level against the league and against Canal Plus for “abuse of its dominant position,” a spokeswoman for TPS said. The satellite platform claims the league’s decision would give Canal Plus a French soccer monopoly and that the channel received preferential treatment in the bidding process.
Canal Plus won the bidding last week for the three most important packages up for grabs (out of seven). The company’s bid was for €480 million ($484 million) if it obtains exclusive pay-per-view rights and €430 million if the rights are shared with TPS .
Under the new arrangement for the 2004-07 seasons, Canal Plus will pay €130 million ($131 million) more per year than it currently does. It also leaves TPS and its owners — French network TF1 and commercial free-to-air broadcaster M6 — which would share broadcasting duties, out in the cold.
The French soccer league called TPS’ offers “inadmissible” due to conditions placed upon the bid by the boards of directors at TPS, TF1 and M6.
The league did not release a detailed breakdown of the bids, but TF1 chief Patrick Le Lay contended that TPS far outbid Canal Plus for each of the top three packages.
“We get the feeling it’s Canal Plus who’s directing the league,” he said in a Sunday interview with French sports newspaper L’Equipe.
A spokeswoman for TF1 declined further comment.
French Culture Minister Jean-Jacques Aillagon let little time pass after the blockbuster announcement, weighing in with a Sunday newspaper interview in which he said, “Football is not the only thing that matters,” referring to Canal Plus’ legal obligation to fund and program French cinema.
Currently, Canal Plus invests €150 million ($151 million) a year in French film.
Jean-Marie Messier, former head of Canal Plus parent company Vivendi Universal, once said that the channel should reconsider cutting its cinema budget. New CEO Jean-Rene Fourtou has not spoken out on the company’s film-related obligations, which are up for review with audiovisual watchdog CSA in 2004.
Separately, Canal Plus chief Xavier Couture said in a Saturday interview with French daily Le Figaro that 800 of its 3,500 employees face layoffs. Monday’s Le Monde brought that figure up to 1,700. Canal Plus declined comment.
