The ongoing mediation between the French men’s soccer league governing body, LFP, and DAZN, the primary domestic broadcaster for top-tier soccer in France, has reportedly been extended. This article delves into the details of this dispute and its implications for sports fans and sports betting enthusiasts.
The mediation is centered around the value of DAZN's contract covering live top-division Ligue 1 soccer. Initially scheduled to conclude on March 31st, it has now been pushed back to April 10th. If no agreement is reached by then, legal action will be necessary.
This issue traces back to earlier this season when DAZN failed to pay half of a rights fee installment amounting to approximately €70 million due in January – it was only paid in late February. The streaming service withheld €35 million citing challenging operational conditions partly due to piracy issues and insufficient cooperation from certain clubs in promoting the Ligue 1 product.
Contention over marketing distribution
DAZN had won the rights for broadcasting Ligue 1 matches after a contentious bidding saga in mid-2024. However, they believed that they were not provided with all necessary information regarding marketing distribution before signing a €375 million-per-year rights deal with LFP. When payments were eventually fulfilled following legal proceedings initiated by the LFP, it was disclosed that more mediation would be undertaken – hence extending their deadline.
Piracy remains one of DAZN's major concerns; an alarming statistic revealed that nearly 37% of viewers who watched Ligue 1 action during early months of season 2024-25 did so illegally according to an LFP-backed report.
The financial implications are also significant as eight second-tier clubs faced bankruptcy risk during summer's media rights saga in 2024. The LFP overestimated the value of its package, leading to Canal Plus not airing live Ligue 1 matches for the first time since 1984.
Current broadcasting scenario
Currently, both DAZN and BeIN Sports broadcast Ligue 1 action domestically. The agreements are worth around $550 million annually, with DAZN paying the lion's share.
DAZN has stated that it needs at least 1.5 million subscribers to break even on this deal; however, current numbers are understood to be well below this figure. During the period when DAZN was withholding funds from LFP, the governing body had to use its cash reserves to pay clubs in top-flight Ligue 1 to cover the shortfall.
The extension of mediation between DAZN and LFP signifies a critical phase in their relationship. As discussions intensify and more constructive talks take place, sports fans and betting enthusiasts alike will be keenly watching how this situation unfolds – impacting not only broadcasting rights but also potentially altering future dynamics of French soccer.
