Paris Saint-Germain’s chief revenue officer, Richard Heaselgrave, has acknowledged that the decline in Ligue 1’s media rights income presents a significant challenge. However, he also sees it as an opportunity that has encouraged the club to rethink its business growth strategies.
Ligue 1 became the first of Europe's 'Big Five' leagues to launch a direct-to-consumer (DTC) streaming service in its domestic market this season. This move came after the French Professional Football League's (LFP) five-year deal with subscription streaming service DAZN was terminated after just one season.
The introduction of Ligue 1+ marks a new chapter in what has been a tumultuous period for the league. The upheaval began with the collapse of its €3.25 billion (US$3.7 billion) deal with Mediapro, which led to a drop in domestic media rights value due to lukewarm interest from broadcasters.
Impact on Paris Saint-Germain
Despite these challenges, PSG continues to receive media rights revenue from European soccer body UEFA for competing in the Champions League - which they won last year - but do not benefit from comparable television income like their European rivals such as those participating in Premier League and LaLiga.
Paris Saint-Germain chief revenue officer, Richard Heaselgrave, said:
“Is it a challenge? Yes,” he said. “Would we like more media rights money? Yes. But interestingly, this sets up an interesting question for all of us. Are we at the front of the train? We probably are. We’re in a league that domestically isn’t watched so much. Therefore, we’ve gone direct-to-consumer [with Ligue 1+], which is doing a great job as a product. The question is whether it delivers as much money as the Premier League, which it clearly doesn’t. I’m not giving away trade secrets there.
“So is this a challenge? Yes. But is this a challenge for everyone coming down the line and any business which thinks the TV model from 30 years [ago] is the way to fund the business if you’re in sport?
“We’ve been talking about this for ten years, I think we’re just living it now. And I don’t think we’ll be the last sports club to do it.”
However, he also pointed out that this situation prompts an interesting question about whether they are "at the front of the train".
Embracing change and looking ahead
While acknowledging that Ligue 1+ does not generate as much revenue as Premier League broadcasts do currently, Heaselgrave believes that the shift to DTC is a necessary step forward. He sees this as an opportunity for all businesses in sports, especially those still relying on traditional TV models from 30 years ago. This sentiment reflects PSG's proactive approach towards embracing change and adapting to new business models, setting an example for other clubs facing similar challenges.
While Ligue 1's media rights decline poses significant challenges, it also opens up opportunities for innovative thinking and growth strategies. As PSG has demonstrated with its successful Champions League campaign and record revenue of €837m for the 2024/25 season, adversity can indeed be turned into advantage with strategic planning and execution.
