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  -   NEWS
Friday, December 6, 2002
Canal Plus paying clubs to ensure rights

PARIS, Dec 6 (Reuters) - Canal Plus is paying six French soccer clubs 250 million euros (£160million) under a seven-year deal clinched in 1999 to ensure future rights to broadcast their matches, Le Monde newspaper reported on Friday.

Le Monde, citing a copy of the contract and an internal letter, said the deal had alarmed debt-laden Vivendi, owner of the pay-TV channel, which was concerned that the contract lacked guarantees that Canal Plus would obtain the rights from the French soccer league.

Canal Plus was not immediately available for comment.

Le Monde said under the deal the firm was due to pay 18.9 million euros to the clubs before the end of December 1999, 28.96 million in 2000, 32 million in 2001 and 45.73 million in 2005.

'To cancel this contract, it would be necessary to launch very complex legal manoeuvres,' Canal Plus Chairman Xavier Couture was quoted as saying.

'The rules may still change and this is Canal Plus's guarantee to have access in the future to picture competition, especially since prestigious clubs can lobby parliament and ministers to change the law,' he said.

The company last month won a three-year deal for soccer rights for 480 million euros a year in an auction by the French soccer league being contested by rival service TPS which is owned by TF1 and M6.

Canal Plus chief Jean-Claude Darmon said the contract with the six clubs, which include Paris Saint-Germain and Olympic Marseille (OM), was not in conflict with the French soccer league's TV soccer rights auction system.

'If we had signed the 20 clubs (of the first division) then yes, we would have been in competition with the league. But that's not the case. TF1 made the same type of deal with OM some years ago,' he told Le Monde.

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