02/10/2024

ADFP warned about Liga 1 agreement with 1190 Sports: "The clubs could go bankrupt."

Domingo 09 de Octubre del 2022

ADFP warned about Liga 1 agreement with 1190 Sports:

The ADFP issued a statement to speak loudly and clearly about the bidding process for the TV rights of the Liga 1.

The ADFP issued a statement to speak loudly and clearly about the bidding process for the TV rights of the Liga 1.

Despite the fact that the Peruvian Football Federation (FPF) announced that it is already carrying out all the necessary procedures for 1190 Sports to take over the television rights for Liga 1 in 2023, there are still several aspects regarding this issue, which is why the ADFP has decided to issue a statement to address this controversy.

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And in the statement published on their website, it is mentioned that the entity of our national soccer has not been clear when talking about the "associative model", because it considers that the clubs could lose a percentage of their main source of income if the arrival of 1190 Sports is finalized.

"The FPF is not clear in explaining about the so-called 'associative model' in which the stakeholders, in this case, the professional clubs, as direct stakeholders, will share profits but also the inherent risks of the negotiations that 1190 Sports will carry out as the direct responsible for the management of television rights. In other words, if the business of selling the rights is not successful, the clubs could lose a percentage of their main source of income, affecting not only them but also their professional players and workers, with their respective families," it said.

Furthermore, the ADFP mentioned that, on one occasion, the FPF had already allowed the Liga 1 clubs to negotiate their television rights with GOLPERU, and even stressed that if the institutions want to change operators, the aforementioned channel could match the offer or waive it.

"The FPF ceded, on its own accord, all the ownership rights to the professional clubs so that they can directly negotiate their television rights with the current operator and receive 10% of those revenues. In these contracts, between clubs and the current operator, payments for a certain number of years were established, as well as a preferential or matching right clause, so if the clubs submit a document with a better economic offer, at the end of their contract, the current operator can match that offer and renew the contract or waive it," they explained.

ADFP Statement

Liga 1 clubs could go bankrupt

Finally, the ADFP announced that there are already established penalty clauses with some institutions, therefore, this new agreement with 1190 Sports could lead Liga 1 clubs to bankruptcy.

"There are penalty clauses established, through which the clubs could be subjected to an arbitration process, which in this case is very burdensome and as a consequence of this, they could suffer million-dollar financial losses that could lead to the bankruptcy of the professional clubs and the soccer system," they concluded.

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