The French Professional Football League (LFP) has voted to end its five-year domestic rights deal with global streaming service DAZN, less than a year into the agreement. The decision was made during a board meeting on April 15, marking another twist in the ongoing broadcast saga between the two parties.
The LFP board of directors, comprising presidents of top-flight Ligue 1 clubs, decided to terminate their relationship with DAZN at the end of this season. A financial proposal for contract termination was sent by the LFP to DAZN following prolonged tension and negotiations. However, reports from France suggest that DAZN immediately rejected these terms.
Earlier this year, DAZN failed to pay half of a €70 million rights fee instalment due in January. The streamer withheld €35 million citing challenging operational conditions such as piracy issues and insufficient cooperation from certain clubs in promoting Ligue 1 product and providing editorial content.
Legal action against non-payment
DAZN had acquired Ligue 1 rights amidst much controversy in mid-2024 but later accused the LFP of not providing all necessary information regarding league marketing distribution prior to signing a €375 million-per-year rights deal. This led to legal action by the LFP against DAZN for non-payment.
Following mediation by Paris Economic Activities Tribunal, DAZN paid its outstanding January media rights fee in late February. Despite this resolution, both parties agreed to extend mediation through Paris Commercial Court until April 10.
Despite weeks of intense discussions facilitated by an appointed mediator from Paris Commercial Court aimed at finding common ground between both parties; an agreement over live coverage value could not be reached leading them towards legal recourse. In response to these developments, Dazn stated: “After four months of discussions – including six weeks of mediation – initiated in good faith by DAZN and involving several proposals, the mediation unfortunately did not succeed in sufficiently bridging the gap between the parties."
Impact on Ligue 1 broadcast
Ligue 1 matches are currently broadcast domestically by both DAZN (eight matches per game week) and BeIN Sports (one game), through a deal that began this season. These agreements, worth around €400 million annually with DAZN paying most of it, are due to run until 2029.
The LFP's overestimation of its package value led to a disastrous media rights saga in summer 2024. This resulted in Canal Plus not airing live Ligue 1 matches for the first time since 1984. DAZN has expressed concerns over piracy issues backed by an LFP report which found that about 37% viewers watched Ligue 1 action illegally during early months of the season. The streaming platform needs at least 1.5 million subscribers to break even on their deal but current numbers fall significantly short.
During DAZN's funding withholding period, the LFP had to use its cash reserves to pay clubs for covering shortfall. Additionally, DAZN is suing the LFP for €573 million citing “observed breaches” and “deception regarding merchandise.” This ongoing dispute is causing concern among financially vulnerable teams while creating divisions among club presidents over league strategy concerning TV rights.
