Media rights and sports business company MP & Silva is in a complete disarray. MP & Silva, struggling for its existence, has now lost its deal with the Premier League giants Arsenal.
Arsenal have announced the termination of contract with MP & Silva, the global sports media and marketing agency. This is yet another major blow to MP & Silva, who are facing a court battle with Serie A over $44.4 million payment default and has have also lost their contract with the Sottish Premier League of the unpaid media rights fee.
The Arsenal blow comes after the reports of agency being in a “state of paralysis” amid serious financial woes with several clients and rights holders ending ties while some moving to a legal recourse over unpaid dues and breach of contract.
Arsenal has confirmed in an official statement that it has cut ties with MP & Silva “with immediate effect”.
The club said that they will now deal directly with global broadcasters to sell their media rights for the 2018/19 season, which include full match replays of every home and away league game and magazine shows.
The Gunners further added that the change in approach will not affect their distribution and presence in international markets, with global fans of the club still set to have access to replays of every match along with the Arsenal World and 360 magazine shows.
The news comes after the reports this month that Scottish Professional Football League (SPFL), the organisers of top four divisions of professional club football in Scotland, have severed its ties with MP & Silva after the agency failed to keep up with its rights fee installments.
Last month, Serie A organisers had reportedly moved court to file complaint against the agency for outstanding debt of around $44.4 million that was to be paid to 20 Serie A clubs.
The agency has also missed on payments to Premier League and the European Handball Federation, among others. It also has pending litigation with FIFA, the global governing body of football, over its advisory contract for rights to the 2018 and 2022 World Cups in Russia and Italy respectively.