MILAN • Italy's top-flight football clubs have mandated Serie A to weigh private equity bids for its broadcast rights business as they look at ways to weather the financial storm triggered by the coronavirus crisis, two sources close to the matter said.

The clubs' top executives met on Tuesday after Serie A had received a series of bids from private equity investors interested in buying a stake in a new company holding the league's broadcast rights.

Broadcasting generates over half the revenues of Italy's top clubs but there are growing challenges due to the economic slump related to the pandemic.

Serie A and CVC Capital Partners have been in exclusive talks for more than a month over a €2.2 billion (S$3.4 billion) bid for a stake of up to 20 per cent in a venture managing the league's media rights for 10 seasons.

So far negotiations have been fruitless.

In the meantime, other private equity investors, including Bain Capital and Advent International, have joined the race with rival bids, sources have said.

"The clubs mandated Serie A's president (Paolo) dal Pino to continue exploring the feasibility of a deal, in a bid to get more definite proposals by end-July," according to one source.

One of the sources said no financial adviser had been appointed, but the plan was to pick one soon.

"The idea is to have a financial partner on board to help Serie A boost its media business," the source added.

Serie A restarted last month after a three-month stoppage due to the coronavirus outbreak but media firms holding broadcast rights postponed or suspended payments to clubs, putting team finances under great pressure.

Comcast Corp unit Sky, Serie A's leading domestic rights holder, still owes the Italian top flight clubs a €130 million instalment relating to the 2019-2020 season.

The sum is part of a three-year €2.3 billion contract expiring next year.

Serie A has rebuffed Sky's request to renegotiate the payment contract in the light of the Covid-19 pandemic.

REUTERS