Ligue 1 Faces Uncertainty as DAZN Withdraws Financial Support for French Football – Numerama

Ligue 1 Faces Uncertainty as DAZN Withdraws Financial Support for French Football - Numerama

Concerns are emerging regarding Ligue 1’s broadcasting rights as DAZN threatens to halt payments due to dissatisfaction with the league’s performance and significant piracy issues. With current subscriber figures far below target, DAZN may exit its contract by December 2025, potentially even sooner. The LFP is considering launching its own streaming service but faces urgent financial pressures. If a resolution isn’t reached, Ligue 1 could lose its broadcaster mid-season, complicating the league’s already precarious financial situation.

Concerns Surrounding Ligue 1 Broadcasting Rights

Last year marked a significant change for the LFP (Ligue de Football Professionnel) as it secured new broadcasting deals for Ligue 1 and Ligue 2. The English streaming platform DAZN was selected to stream 8 out of 9 matches of France’s premier football league until 2029. Following the tumultuous Mediapro incident, which saw the Telefoot channel abruptly abandon its Ligue 1 broadcasts just six months after acquiring rights due to unprofitability, the LFP sought a reliable broadcaster. DAZN was chosen in August 2024, despite its ambitious goal of attracting 1.5 million subscribers within a year.

DAZN’s Threats and Potential Exit

However, the LFP might be facing another crisis. For months, analysts have cautioned that the league’s valuation could lead to a repeat of past failures, with recent reports indicating that DAZN has threatened to withhold payments due to dissatisfaction with the current broadcasting landscape. A report from L’Équipe revealed that DAZN’s recent transfer payments were a staggering 50% lower than anticipated.

DAZN may very well terminate its contract by December 2025, but the question remains: could it happen sooner? With an exit clause in its contract, DAZN can opt out if it fails to meet the 1.5 million subscriber threshold by December 1, 2025. Given that DAZN currently has around 500,000 subscribers and has struggled with profitability despite aggressive promotions, a pre-emptive exit before the winter break seems increasingly likely.

The LFP has time to prepare for this potential crisis and is even contemplating launching its own streaming service before issuing a new tender. However, a twist in the narrative has emerged: DAZN may cease payments as early as February 2025. Frustrated by the LFP’s claims of success against piracy, DAZN has noticed significant piracy of Ligue 1 matches, which undermines their subscription model.

The LFP Board of Directors is set to convene on February 12 at 5:30 PM to address what they describe as an “unfortunately urgent” situation. Ligue 1 clubs, heavily reliant on TV rights for their budgets, could face serious repercussions. According to reports from L’Informé, the LFP issued a formal notice to DAZN on February 7, demanding payment by February 14, a message they will convey during the board meeting.

Will DAZN pull the plug on its Ligue 1 broadcasts? While there are no clear indications that DAZN plans to abandon its broadcasting rights, the company might be attempting to pressure the LFP or negotiate a lower price for the championship, which they currently view as overpriced. Nonetheless, if an agreement isn’t reached, a complete withdrawal could become a reality in the near future.

If such an outcome occurs, Ligue 1 could find itself without a broadcaster mid-season, forcing the LFP to scramble for a quick solution. Given the current financial unattractiveness of the league, mainly due to DAZN’s high subscription fees, turning to established broadcasters like Canal+ or Amazon could be a viable option, though their interest remains uncertain. The departure of Vincent Labrune, the current head of the LFP, could also be inevitable in the event of a major broadcasting fiasco.

As piracy and the challenges posed by streaming services loom large, French football is once again caught in a web of uncertainty. DAZN, struggling for profitability, is also facing challenges in markets like Italy and Germany, adding to the precarious situation of Ligue 1’s broadcasting future.