Insurers will not face huge claims from the insolvency of German media giant KirchMedia over the World Cup.

According to lawyers its broadcasting rights revert back to the international football association, Fifa.

James Chapman & Co partner Jason Smith said: "The contract between Fifa and KirchMedia, or the Kirch parent company, should contain a provision whereby if a company goes into liquidation or administration, the rights revert back to Fifa."

Fifa will then take the place of Kirch to ensure all rights to broadcast the World Cup matches are delivered, including production and supply of the basic broadcasting feed.

But if the televised games are interrupted, delayed or fail to be broadcast, KirchMedia may face a claim from any advertisers or third parties, according to Smith.

"The difficulty with these claims would be quantifying the loss of exposure which the advertiser gets if the match is not broadcast."

Topics