French Football Federation to Hold Crisis Meeting on Ligue 1 TV Rights
A meeting to address the ongoing crisis surrounding the French Ligue 1 television rights will be held on March 3 at the headquarters of the French Football Federation (FFF).
Representatives from the Ligue de Football Professionnel (LFP), clubs, financial watchdog DNCG, and investment fund CVC, which played a key role in the creation of LFP’s commercial subsidiary, will attend the gathering.
FFF president Philippe Diallo announced last week that he would convene all stakeholders in early March to discuss "failures not just related to audio-visual rights" and to prevent "club defaults."
Diallo’s announcement came after an executive committee meeting of the FFF and an emergency board meeting of the LFP to discuss the dispute with Ligue 1 rights holder, British streaming platform DAZN.
The LFP has filed a lawsuit against DAZN in a bid to secure payment of a February installment that the platform has threatened not to honor. DAZN, in turn, has filed a €573 million lawsuit against the LFP for "deception on the merchandise" and "non-compliance observed."
"The situation is not good for the credibility of our football," said Diallo, emphasizing the need for French football to reconsider its "economic model" of relying heavily on TV rights and player transfers.
A Crisis with Multiple Roots
The Ligue 1 TV rights crisis is the result of a complex set of factors.
DAZN, which acquired the bulk of Ligue 1 rights for around €800 million per season over four years, has struggled to meet its financial obligations due to lower-than-expected subscriber numbers.
The platform’s difficulties have been exacerbated by the impact of the COVID-19 pandemic on live sport, which has led to a reduction in revenue from advertising and sponsorships.
Furthermore, the French football landscape has been weakened by financial mismanagement and poor governance at clubs, as well as the influence of powerful player agents.
A Way Forward
The March 3 meeting will provide an opportunity for all parties involved to take stock of the situation and work towards a solution.
One potential outcome could be a renegotiation of the TV rights deal with DAZN, allowing for a reduction in payments.
Another option would be to find a new broadcast partner, although this would likely require a significant investment from a third party.
In addition, the FFF could implement stricter financial regulations for clubs and agents to prevent future crises.
It is also essential to address the underlying issues that have contributed to the crisis, such as the over-reliance on TV revenue and the need for improved governance in French football.
Future of French Football
The outcome of the March 3 meeting will have significant implications for the future of French football.
If a sustainable solution can be found, it will provide much-needed stability to the Ligue 1 and its clubs.
However, if the crisis continues, it could lead to further financial problems for clubs and undermine the credibility of French football on the international stage.
The key players in the French football ecosystem must work together to find a way forward that ensures the long-term health and prosperity of the sport.
