Current Crisis in Broadcast Deals

French football is facing a significant challenge as it seeks to establish new broadcasting arrangements following a contentious dispute with its media partner, DAZN. This ongoing conflict threatens the financial stability of clubs and casts doubt on the reputation of Ligue 1, France’s premier football league.

DAZN’s Withdrawal from Contract

DAZN, a UK-based sports streaming service, has declared its intention to not honor a five-year contract with Ligue 1, citing substantial financial losses and insufficient subscriber interest as key reasons. The partnership, which is only in its inaugural year, has been mired in accusations from DAZN regarding the league’s failure to provide adequate access to players and events, as well as insufficient efforts to combat piracy.

Recent mediation attempts between Ligue 1 officials and DAZN fell through, leading to heightened concerns about the league’s financial future.

Historical Context and Stakeholder Concerns

The troubles for Ligue 1 are long-standing, stemming from the financial crisis following Mediapro’s bankruptcy in 2020, which occurred during the pandemic. Mediapro had previously outbid Canal+, a local pay-TV operator, who had held broadcasting rights for decades. The relationship between Canal+ and Ligue 1 quickly deteriorated after Mediapro’s exit, resulting in Canal+ initiating legal actions for damages and expressing disinterest in continuing support for French football.

Spearheaded by stakeholders from various clubs, industry executives, and politicians, there is growing alarm over the potential fallout from a complete severance with DAZN. French senator Laurent Lafon emphasized the precarious position of Ligue de Football Professionnel, describing the league’s financial situation as perilous, particularly for smaller clubs facing existential threats due to dwindling broadcast revenues.

Potential Pathways Forward

As the situation develops, discussions have emerged regarding possible solutions, including the creation of an independent Ligue 1 channel or efforts to repair the fractured relationship with Canal+. The league has enlisted private equity firm CVC, which invested €1.5 billion in a commercial entity working to market broadcasting rights globally. This entity recently appointed Nicolas de Tavernost, a seasoned television executive, to navigate the ongoing challenges.

While Canal+ CEO Maxime Saada has expressed a willingness to engage in discussions, he remains cautious due to prior grievances. Saada recognized the potential for a resolution but suggested significant damage has been done in previous dealings.

Industry analyst François Godard warned that launching an independent channel could be a risky move, lacking the necessary expertise and requiring agreements with existing broadcasters like Canal+ and DAZN, effectively returning to the original impasse.

Outlook and Future Considerations

Despite the grim outlook, some insiders within the league believe that there is potential for reconciliation with Canal+. A stakeholder remarked, “There is nothing desperate or destined to failure about this whole situation… but it will take two years of pain to get the house of French football back in order.”

Meanwhile, DAZN, which is primarily owned by Sir Leonard Blavatnik, continues to pursue an array of sports rights internationally, despite its disappointing foray into French football.

Both DAZN and Canal+ have not publicly commented on the latest developments. The league maintains optimism, asserting that a solution will indeed materialize and assuring fans that no games will be blacked out for the upcoming season.