Sports marketer ISMM faces bankruptcy

Viv U, Interpublic, Havas, News Corp. among suitors

By SOPHIE NICHOLSON

PARIS -- A Swiss court has started bankruptcy proceedings against the world's second-largest sports marketing group, ISMM. The Swiss-based group -- whose subsid ISL Worldwide holds international rights to the 2002 and 2006 World Cups -- saw its request for a three-month postponement of bankruptcy rejected by a court Wednesday night.

ISMM said it would immediately appeal the decision. It sought to delay bankruptcy proceedings in order to finalize a rescue package with an unnamed investor.

Several of the sector's big operators have shown an interest in the group, including Vivendi Universal, Interpublic, Havas Advertising, News Corp. and IMG.

German media conglom Kirch, which already owns the European rights to the World Cup, has shown interest in buying ISMM's World Cup rights for the rest of the world. Insiders said that it would be cheaper to buy the company's assets, including the sports rights, once ISSM becomes insolvent.

ISSM's problems come from greater than expected fiscal losses, including those stemming from its $1.2 billion deal for the Tennis Masters series TV rights.

The Intl. Football Federation (FIFA), which oversees soccer's top tourney, announced that it had "already taken the necessary measures to ensure the smooth running of the 2002 World Cup in Korea and Japan."

FIFA is relying on ISL Worldwide to sell commercial and media rights to both the 2002 and 2006 World Cup competitions.