Learfield IMG College, the multimedia business that owns broadcast rights for many of the country’s leading collegiate sports programs, is preparing for a possible financial restructuring as the coronavirus pandemic curtails athletics nationwide, WSJ Pro Bankruptcy reported. The company has tapped law firm King & Spalding LLP for advice on renegotiating its obligations. Backed by entertainment giant Endeavor Group Holdings Inc. and investment firm Atairos Group Inc., Learfield relies on collegiate sports competitions that are sure to draw fewer fans and dollars in the fall season, if they are held at all. Investors price the company’s $475 million first-lien loan at around 72 cents on the dollar, according to FactSet, indicating concerns about repayment. A $75 million second-lien loan trades at roughly 48 cents, according to FactSet. While Learfield’s core business is in television, radio and sponsorship rights, the company also makes money on signage and displays inside stadiums, as well as ticket sales and concession services. The Plano, Texas, company has multimedia rights to nearly 200 college teams, as well as the Big 12, Big Ten and A-10 conferences. Athletic departments across the country are curtailing sports activities and haven’t reached consensus on how to put on games safely amid the pandemic. Schools are limiting stadium attendance, canceling nonconference play and sequestering athletes to mitigate the risk of contagion.
