MEDIA: German politicians have attacked government plans to bankroll the country's leading football clubs with a €200 million loan.
German football clubs fear the looming bankruptcy of the Kirch media group, owner of German football television rights, will deprive them of more than €375 million in annual broadcast royalties - their main source of income.
The slow collapse of the Kirch empire, weighed down by €6.5 billion in debt, has also thrown into doubt television coverage of the 2006 World Cup. Kirch bought the television rights for €1.5 billion but FIFA, football's world governing body, is unlikely to ever see the money.
Yesterday the German government defended its plan to provide a bridging loan to 36 football clubs until a buyer for the television rights is found.
"It's about security - a loan repayable with interest - and not about a gift from taxpayers," said a spokesperson for the economic ministry in Berlin.
The Kirch group is likely to declare bankruptcy in coming days and Mr Rupert Murdoch and Mr Silvio Berlusconi are waiting in the wings to snap up the company's choice assets.
