Global sports streaming service, DAZN, has escalated its dispute with the French soccer league body, Ligue de Football Professionnel (LFP), demanding a media rights compensation fee of €573 million ($599.7 million). The platform alleges that it was misled about the number of subscribers it would gain when acquiring the rights to broadcast Ligue 1 matches. DAZN claims that it was deceived by the LFP regarding potential subscriber numbers when it secured broadcasting rights for France's top-flight football league. The platform believes that this discrepancy warrants a compensation of €264 million for contract breach and an additional €309 million for what they term as "market dishonesty."
The streaming giant is reportedly frustrated with the LFP’s perceived lack of action against piracy and is also dissatisfied with the limited assistance from Ligue 1 clubs in providing editorial content.
In response to these issues, DAZN only paid out half - €35 million - of TV rights money expected by Ligue 1 clubs this month. The remaining amount has been withheld by DAZN. As a result of these ongoing disputes, legal steps have been taken against the organization at Paris Commercial Court. This comes after previous allegations made by DAZN were rejected by the LFP who then filed their own lawsuit demanding full payment from DAZN.
Controversial Bidding Saga
According to French newspapers, DAZN acquired broadcasting rights for League 1 amidst controversy in mid-2024. They allege that crucial information regarding marketing distribution was withheld prior to signing a deal worth €375 million per year. This dispute could potentially drag on for years as both parties seek legal recourse. With subscription numbers falling short of break-even figures, estimated at 1.5 million subscribers, DAZN is eager to recoup its losses.
The payment shortfall from DAZN has forced the LFP to dip into its cash reserves to compensate clubs. This has plunged the organization into crisis as it struggles to maintain financial stability for its member clubs, many of whom have suffered due to mismanaged broadcast deals.
The tender process for the 2024-29 cycle was disastrous for the league, with an overestimation of package value leading to a significant drop in domestic broadcast rights and near bankruptcy for several clubs.
Canal Plus fallout
Adding fuel to fire, Canal Plus, one of LFP's primary broadcasters, refused participation in this season's tender process due to ongoing disputes over previous rights deals. This marks the first time since 1984 that Canal Plus will not be airing live Ligue 1 matches.
Despite these challenges, BeIN Sports continues broadcasting one game per week under a deal that began this season. It is understood that BeIN is up-to-date with all payments related to media rights.
This saga serves as a stark reminder of how crucial transparency and fair dealings are in maintaining healthy relationships between sports leagues and broadcasters.
