Ligue 1 Broadcast in Dire Straits: Billion Euro Fees and Only Tens of Thousands of Subscribers May Lead to Unilateral Termination of Contracts

According to reports from the Spanish newspaper AS, the broadcasting rights for French football leagues are undergoing an unprecedented crisis, one that is even more severe than the breakdown of cooperation with Mediapro in 2020.

In 2018, Mediapro signed a broadcasting agreement worth 1.153 billion euros with the French Professional Football League (LFP). However, in 2020, Mediapro unilaterally breached the contract, causing significant financial losses to LFP and forcing it to apply for two government loans to cover the shortfall.

Four years later, the situation has become even more challenging. According to information disclosed by journalist Polma on social media platforms, DAZN, which currently holds the broadcasting rights for eight matches per round of the Ligue 1, despite paying a transfer fee of 400 million euros, only has 100,000 subscribers, far short of its target of 1.5 million.

This British streaming service platform faced intense criticism when it launched subscription plans at 39.99 euros per month (no commitment required) or 29.99 euros per month (with a one-year commitment). In order to attract more users, DAZN lowered the price to 19.99 euros per month on September 13th, but this move did not produce the expected effect among French audiences who are deeply troubled by inflation and accustomed to using IPTV (with approximately 2 million users annually).

DAZN signed a five-year broadcasting agreement with LFP in July this year, valued at 400 million euros in total. However, behind this agreement lies some complex situations: American investment fund CVC will receive 20% of the television broadcasting revenue for this season; meanwhile, after deducting taxes and production costs, Ligue 1 clubs can only share 178 million euros.

The agreement between DAZN and LFP also includes multiple clauses, such as if DAZN fails to reach the user base of 1.5 million within the second year, it has the right to unilaterally terminate the contract. If the news that DAZN currently only has 100,000 users is true, and it cannot attract foreign investment to support its growth, then its future looks bleak.

However, the crisis facing French football is not limited to DAZN. beIN Sports, which holds the broadcasting rights for the remaining match, reached an agreement with LFP in August to broadcast one match per round for 100 million euros. However, this Qatari broadcaster has yet to pay the first installment due in September and stated that it will not pay any fees unless LFP commits to promoting its brand and meeting certain specific conditions.

The refusal to pay by beIN Sports has caused considerable anxiety among many Ligue 1 clubs that rely on TV broadcasting revenue to maintain daily operations and player transfers. If DAZN fails to increase its user base, LFP may have to end their cooperation two years ahead of schedule and seek new broadcasting partners. The French league is facing serious financial challenges, and the funding support provided by broadcasters is gradually decreasing.