Media

Virgin Media sues Eir over alleged failure to pay €2.5m fee

Eir denies in correspondence it has breached the agreements, court hears

In its action Virgin seeks judgment in the sum of €2.5 million, which it claims it is due under an August 2019 agreement.
In its action Virgin seeks judgment in the sum of €2.5 million, which it claims it is due under an August 2019 agreement.
Aodhan O'Faolain
Mon Dec 14 2020 - 17:38

Virgin Media Television's claim over Eir's alleged failure to pay a €2.5m fee as part of an arrangement concerning the broadcast of sports channels has been admitted to the fast-track commercial court list.

Virgin claims in its action against Eircom Ltd, trading as Eir, that the parties entered into an agreement in 2019 for the distribution of its sports broadcasts by Eir.

The parties had also agreed for the carriage of the defendant’s Eir Sports 1 channel by Virgin Media.

Virgin claims the total consideration that the defendant would pay it was €6 million between the end of 2019 and 2021.

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Payment

Virgin claims that the defendant paid it €1 million plus VAT in December 2019. It claims the next payment of €2.5 million plus VAT, under what Virgin says is a licence fee agreement, was due to be paid on July 1st, 2020.

Virgin claims the payment was not made, remains outstanding and that Eir is in breach of contract.

Virgin also claims that last August the defendant asked to discuss the €2.5 million payment in light of the reduced Champions League and Europa League seasons, which are broadcast by Virgin, due to the Covid-19 pandemic.

In mid-August, Virgin suspended its sport media channels from the defendant’s service due to the alleged non-payment of the fee. Shortly afterwards Eir removed its Eir Sports 1 from Virgin’s platforms.

The court heard that in correspondence Eir denied it had breached the agreements, as alleged by Virgin. It also claims it is Virgin that has breached the agreements. The claim is rejected by Virgin.

Agreement

In its action Virgin seeks judgment in the sum of €2.5 million, which it claims it is due under an August 2019 agreement made between the two parties entitled Eir Deal Terms for the Distribution of Virgin Media Television service Virgin Media Sport.

Virgin is also seeking damages plus interest.

The action was admitted to the commercial court list by Mr Justice David Barniville on Monday. The judge said liability was very much an issue in the proceedings when he admitted the case to the list. He approved directions for bringing the case to hearing and adjourned it to the new year.