Learfield/IMG appears to be preparing for a fall without college football and is making sure it is legally protected. The Wall Street Journal reports that the broadcast company has retained the King & Spalding law firm to advise it on renegotiating its multimedia rights contracts with schools and debt.
A college football season is very much in doubt for 2020. Learfield had already begun asking schools to renegotiate their rights deals, including eliminating rights fees and delaying payments.
The Journal cites “sources familiar with the matter” in its reporting. Learfield/IMG is refuting parts of the story according to Sports Business Journal. Learfield/IMG says it is not renegotiating debt. The company also says that it is not obligated “to make the guaranteed annual payments to its school clients” as the WSJ suggests. Some schools have already agreed to renegotiated deals.
Learfield/IMG is the biggest name in media rights for college athletics. The company represents nearly 200 schools.
The company’s financial struggles were highlighted in the story as well. Investors don’t seem to have faith Learfield/IMG will be able to payback the loans it has taken out to stay afloat during the Covid-19 Pandemic. The first-lien loan of $475 million is trading at 72 cents on the dollar. A second loan of $75 million is trading at 48 cents on the dollar.
