DAZN, the primary broadcaster of Ligue 1 in France, is reportedly contemplating cancelling its contract at the end of the season. This decision comes amidst escalating tensions between DAZN and the Ligue de Football Professionnel (LFP), according to a report from RMC Sport.
Since taking over domestic broadcasting rights last summer, relations between DAZN and LFP have become increasingly strained. In February, DAZN defaulted on their monthly payment due to a dispute with the LFP. The broadcaster withheld €35 million intended for distribution to Ligue 1 clubs. The core issue was that DAZN felt frustrated by what they perceived as insufficient efforts by the LFP to combat piracy and lack of content participation from certain clubs.
Disappointing subscriber numbers
Adding fuel to this fire is that their broadcast package has only attracted half a million subscribers in a country with a population of 68 million people. These numbers are significantly below what's needed for them to break even - suspectedly around 1.5 million subscribers.
Since this dispute began in February, discussions have been ongoing between both parties with mediation support. However, despite less hostile dialogue, there has been little notable progress made so far. The mediator reportedly told the league that DAZN’s concerns over product promotion were valid since some clubs were restricting access for their main broadcaster. As part of an action plan proposed by DAZN, they suggested more exclusive interviews with high-profile players and access to more exclusive filming locations.
However, according to DAZN's perspective, this action plan hasn't been sufficiently implemented yet; they're still being denied access by certain clubs and are awaiting permission to bolster their anti-piracy resources.
Potential early termination
Frustrations are mounting in the mediation process, and DAZN is seriously considering terminating its contract as soon as possible. This would be at least a year earlier than its two-season exit clause, which can only be triggered in December of this year.
The LFP has proposed harsher penalties or fines for clubs that fail to meet their media commitments. However, this hasn't convinced DAZN. If they do decide to terminate the contract early, it could lead to a significant legal battle as the LFP will likely want to enforce the financial commitments made by DAZN. RMC Sport suggests an amicable solution might exist where DAZN waives a clause preventing the LFP from discussing alternative plans with rival broadcasters. For now, mediation continues with all eyes on April 30th when DAZN is due to pay their next instalment - thought to be around €70 million.
This ongoing dispute raises questions about future broadcasting rights and how they'll impact both leagues and broadcasters alike. It's clear that both parties need to find common ground for successful collaboration moving forward.
