Media giants throw lifeline to bankrupt sports promoter
The beleaguered sports and marketing firm, ISMM-ISL, is reportedly on the verge of being rescued from bankruptcy. The company, which has its headquarters in Switzerland, has apparently reached a deal with two major media companies.
The German edition of the Financial Times said on Friday that a deal had been struck between the ISMM management and the French company, Vivendi, as well as the Luxembourg-based television company, RTL.
If confirmed, the deal would give the media firms access to lucrative licences to market and broadcast sports events. They could also become a serious competitor to Germany’s Kirch group.
ISMM holds television rights to the 2002 and 2006 football World Cups. But the company faces liquidation after being ordered to start bankruptcy proceedings by court in Switzerland last week. However, the decision has been suspended until judges consider an appeal by the company.
The company’s marketing subsidiary, ISL, got into financial difficulties due to a series of bad investments in tennis, motor racing and football events.
In a separate development, Europe’s governing football body, UEFA, has announced that it is owed SFr20 million (more than $11 million) by ISL.
A spokesman for UEFA in London said the association was taking steps to recover the debt.
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