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Mediapro, Real Madrid, Barcelona Fined For Rule-Breaking Four-Year TV Contracts

Spain's National Markets and Competition Commission (CNMC) has fined broadcaster Mediapro and La Liga clubs Real Madrid, Barcelona, Sevilla and third-tier side Racing Santander a total of €15M ($20.3M) for "breaking rules regulating the sale of television rights," according to Iain Rogers of REUTERS. Mediapro was fined €6.5M ($8.8M), Real €3.9M ($5.3M), Barcelona €3.6M ($4.9M), Sevilla €900,000 ($1.2M) and Santander €30,000 ($40,670). The fines were "levied because the broadcaster and the four clubs had agreed four-year contracts for TV rights, a year longer than the three years allowed." Mediapro said that  it and the clubs "had acted 'in good faith' and the contracts complied with Spanish law." The broadcaster will "appeal the ruling while taking steps to ensure it does not have to pay the fines while a decision is pending." Unlike in other "major European leagues, the sale of TV rights is not subject to collective bargaining and clubs agree deals individually with broadcasters" in Spain. Real and Barcelona combine to "take about half the total TV revenue for La Liga," which is around €700M ($949M) (REUTERS, 12/2). FOOTBALL ESPANA reported the four clubs and Mediapro "had been under investigation" since "mid-2012 for agreeing respective deals relating to media rights." The CNMC ruled that the contracts signed by the clubs and Mediapro "contravened fair competition rules." The CNMC labeled this a "very serious offence" (FOOTBALL ESPANA, 12/2). BLOOMBERG's Alex Duff reported Real Madrid and Barcelona "ceded their television rights since 2006 to Mediapro, which shares them with Promotora de Informaciones SA" (BLOOMBERG, 12/2).

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