The Ligue de Football Professionnel (LFP), French soccer’s often embattled league organizer, has withdrawn funds from its cash reserves to pay clubs in its top-flight Ligue 1 to make up the shortfall after international sports streaming service DAZN failed to pay its rights fees.
DAZN, which picked up Ligue 1 rights in a highly contentious bidding saga in mid-2024, failed to pay half of what it was scheduled to this month, only paying €35 million ($36.5 million) when €70 million was expected to be distributed. The other €35 million has been frozen in escrow by DAZN.
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This has sent the LFP into crisis as it scrambles to maintain the flow of money to its member clubs, a process that has led to it dipping into its reserve funds.
Last week (February 13), the LFP called an urgent meeting with the presidents of the 18 Ligue 1 clubs to decide what to do, and although the matter has entered legal proceedings at the Paris Economic Activities Court, the LFP board of directors chose not to wait for the outcome and expedite the release of funds to its clubs.
The LFP said this decision was unanimous among the board and enabled by the body’s partnership with the CVC Capital Partners investment firm, which is has a stake in the LFP Media subsidiary.
French outlet L’Equipe reports that DAZN withheld half of its media rights payments after growing tired of the LFP’s perceived lack of results in the fight against piracy. In addition, DAZN is also reportedly angry at Ligue 1 clubs for their limited help in giving the streamer editorial content.
Ligue 1 action is currently shown domestically by both DAZN (eight matches per game week) and BeIN Sports (one game), through a deal that began at the start of this season.
The agreements are worth around $550 million annually, with DAZN paying the vast majority.
A decision from the court is expected by the end of the week, which is also when the money from the LFP reserves is expected to reach its member clubs.
In response to the LFP’s suit, DAZN explained its stance, citing challenging operational conditions, partly due to piracy issues and insufficient cooperation from certain clubs in promoting the Ligue 1 product, for not paying the full rights fee.
Brice Daumin, managing director of DAZN France, said: “In mid-December, we approached the LFP with an action plan aimed at better protecting our exclusivity, combating piracy, and gaining improved support from clubs to enhance the appeal of the Ligue 1 offering for our subscribers.
“However, we never received a response from them. Therefore, on February 5, we remitted half of the amount due, €35 million, while placing the remaining €35 million in escrow pending a reply from the LFP, hoping to trigger a necessary response.”
On the LFP’s lawsuit, Daumin stated: “Nothing gets resolved in court. The league was supposed to get back to us by January 6 but failed to do so. Over the past two months, DAZN, the LFP's largest partner, has received no communication despite numerous follow-ups.”
The Ligue 1 media rights saga that engulfed the summer of 2024 was disastrous, and as many as eight Ligue 2 clubs were said to be at risk of bankruptcy had a deal not been reached.
With the media rights frustrations not yet ceased at the LFP, future financial woes among its member clubs could be on the horizon.
