Spain’s Mediapro and its clubs hit with fines for breaking TV contract laws

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By Andrew Warshaw
December 3 – In a case that has again brought focus in Spain on to the hot topic of clubs and the sale of their TV rights, Barcelona and Real Madrid are among four Spanish teams that have been fined for breaking broadcast competition rules.

Sevilla and Racing Santander are the other clubs sanctioned for signing contracts with agency Mediapro for longer than the permitted three years, a regulation established in 2010.

Real Madrid and Barcelona are reported to earn almost €140 million from their individual contracts with Mediapro but Real will now have to fork out €3.8 million, Barcelona €3.5 million, Sevilla €900,000 and cash-strapped Racing Santander, who have plummeted into the third division, €30,000.

Mediapro has been ordered to pay a total of €6.5 million for their involvement in the arrangement.

According to the Comisión Nacional de la Competencia, the competitions regulator, all parties made a “very serious” infraction of the rules.

Mediapro immediately said it would appeal the fine in court. The agency said in a statement it and the clubs had acted “in good faith” because a subsequent law allowed TV contracts to last as long as four years.

Spanish clubs have been in continual conflict over TV revenue distribution which has seen the bulk of television money going to Barcelona and Real Madrid – which other clubs claim has made them uncompetitive because of the increased buying power it gives the big two. Proposals for a more equitable distribution or TV revenue are currently being considered with 2016 suggested as the implementation date.

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