LFP confirms imminent receipt of € 224.5m loan from French government to support clubs following league cancellation

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The LFP confirmed in a statement this afternoon that it would benefit from a government loan to support the clubs after the French football body decided to prematurely end the 2019/20 campaign.

The General Assembly of the LFP voted this item on the agenda by videoconference this afternoon, the loan amount will be € 224.5 million, according to The team, and was asked to make up the shortfall linked to the cessation of payments from Canal + and BeIN Sports, which were the 2019/20 broadcasters of Ligue 1 and Ligue 2.

This loan is in addition to the € 47.6 million already paid by the two television channels, an amount which corresponds to the matches played before the first suspension of the championship on March 13. The LFP will thus hold around € 272.1 million, which is roughly what the clubs would have received by the end of the season if the broadcasters had not terminated their broadcasting contracts and if the campaign had taken place in its own right. entirety.

The sum, collected thanks to this government mechanism which was put in place to help companies get through this COVID-19 crisis as well as possible, must now be distributed at the time when the TV rights were to be over the whole of the Ligue 1 and League. 2 clubs.

The device allows companies to apply to the bank for a loan of up to 25% of last year’s turnover, which for the LFP amounted to 898 million euros. The state itself guarantees 90% of the loan. The terms of the loan ensure that the LFP has nothing to repay in the first year. After that, they can repay it immediately after that period or over five years.

Several clubs have already benefited from the device individually, Strasbourg and Paris FC having been successfully integrated into the program and around thirty clubs have applied for the device.

Note that it is the LFP that collects the amount via the device and that it will therefore be responsible for reimbursing the amount.


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