DAZN, the sports streaming service, is reportedly considering renegotiating its €400 million-a-year deal with the French Professional Football League (LFP) for domestic broadcast rights to Ligue 1 matches. This comes in light of low subscriber numbers and a challenging financial climate for French football clubs.
Ligue 1 has been a flagship property for DAZN in France since the start of the 2024/25 season. The platform broadcasts eight out of nine top-flight fixtures each matchday. However, despite these efforts and numerous price cuts and promotions, DAZN has only managed to attract about 400,000 subscribers by November end.
The company had initially projected that it would need at least 1.5 million subscribers to ensure a return on investment (ROI). Given the current scenario, it seems unlikely that this target will be met anytime soon.
Potential contract termination
If DAZN fails to secure enough customers or reach an agreement with LFP over renegotiated terms, it could potentially terminate its contract after two seasons. This decision hinges on whether they can achieve their threshold of 1.5 million subscribers by December 2025.
Similarly, BeIN Sports — which pays US$100 million per season for broadcasting one remaining fixture — also holds an exit clause allowing them to terminate their deal after three seasons. The potential termination or renegotiation of these contracts could have significant implications for French club finances. The LFP had hoped that new broadcast deals would help bridge the financial gap between Ligue 1 and other major European leagues.
However, contracts with both DAZN and BeIN were finalized just weeks before the new season began — representing a substantial drop in revenue compared to previous deals with Amazon Prime Video and Canal+.
Financial strain on Ligue 1 and Ligue 2 clubs
The uncertainty surrounding these deals could exacerbate an already challenging financial climate for clubs in both Ligue 1 and Ligue 2. According to new projections by the LFP’s National Control and Management Directorate (DNCG), clubs in France's top two divisions are expected to post combined losses of €1.2 billion.
This financial strain is attributed not only to reduced broadcast income but also to the fact that clubs no longer benefit from revenues resulting from private equity firm CVC’s investment.
DAZN's struggle with subscriber numbers and the potential renegotiation or termination of its contract with the French Professional Football League could have far-reaching implications for French football finances. As sports fans and sports betting enthusiasts, it will be interesting to see how this situation unfolds over time.
