LFP and DAZN Reach Agreement, Paving Way for New Ligue 1 Channel
The tension between the Ligue de Football Professionnel (LFP), the governing body of French professional football, and DAZN, a leading sports streaming platform and key broadcaster of Ligue 1 matches, has significantly eased following a recently reached agreement. The two organizations have resolved their legal dispute, according to an announcement made by the LFP after a board meeting on Friday. While the specific details of the agreement were initially scarce, sources close to the matter have revealed key aspects of the resolution.
Under the terms of the agreement, DAZN is expected to remit the remaining two payments due for the current season. These payments, scheduled for April 30th and June 30th, amount to a total of €140 million. Additionally, DAZN will withdraw the legal proceedings it had initiated against the LFP at the Commercial Court.
The partnership between the LFP and DAZN began in July 2024, with a substantial contract valued at €400 million per year. This agreement granted DAZN the rights to broadcast eight Ligue 1 matches per matchday until 2029. However, the relationship quickly soured as disagreements and issues arose between the two parties.
DAZN voiced concerns about the challenging operating conditions in the French market, particularly highlighting the widespread problem of piracy. The streaming platform also expressed dissatisfaction with what it perceived as a lack of cooperation from some clubs in promoting and enhancing the appeal of Ligue 1 to its subscribers. These factors, according to DAZN, hindered their ability to effectively market and monetize the "Ligue 1 product."
The situation escalated to the point where DAZN took legal action against the LFP, alleging "observed breach" and "misleading merchandise." The platform sought €573 million in damages from the LFP.
A turning point in the dispute came in April with the appointment of Nicolas de Tavernost as the Director-General of LFP Media, the LFP’s subsidiary responsible for commercializing the television rights of the French league. De Tavernost, formerly the head of M6 and a past owner of Girondins de Bordeaux, brought a wealth of experience and a fresh perspective to the negotiations. His involvement is believed to have facilitated a renewed dialogue and ultimately helped bridge the gap between the LFP and DAZN.
While the agreement does not terminate the existing contract between the LFP and DAZN, it does open the door for a new phase of discussions. These discussions will center on the potential creation of a dedicated 100% Ligue 1 channel by the LFP. This initiative aims to provide a more comprehensive and engaging viewing experience for fans, showcasing the best of French football.
The agreement also allows the LFP to explore potential partnerships with various players in the audiovisual market. This would involve gauging interest in distributing the proposed Ligue 1 channel and identifying the most suitable partners for the venture. DAZN has already expressed its willingness to invest €100 million in the project.
DAZN indicated its support for the LFP’s channel project, stating, "In the context of ongoing discussions, we have responded positively to the Ligue’s channel project." The company proposed investing €100 million over the first two seasons.
However, DAZN has also emphasized that no final decisions have been made regarding the future of its Ligue 1 broadcast contract beyond the 2024-2025 season. "DAZN wishes to clarify that no decision has been made to date regarding the continuation of its Ligue 1 broadcast contract after the 2024-2025 season. We are continuing a constructive dialogue with the Professional Football League, in a spirit of exchange and collaboration," the company stated.
DAZN has consistently maintained its commitment to remaining in the French market, but only within a sustainable economic framework that benefits French football and all its stakeholders. This suggests that DAZN is seeking a more viable business model than the current arrangement, which involves broadcasting eight out of nine Ligue 1 matches per matchday for €400 million per year. BeIn Sport currently broadcasts the remaining match.
"We did not come to France to leave after a year, nor to lose money," DAZN emphasized, signaling its long-term ambitions while also highlighting the need for a financially sound partnership.
The agreement between the LFP and DAZN represents a significant step forward in resolving a complex and contentious dispute. It provides a foundation for future collaboration and opens up new possibilities for the development and promotion of Ligue 1. The creation of a dedicated Ligue 1 channel could significantly enhance the league’s visibility and appeal, both domestically and internationally. However, the success of this venture will depend on securing the right distribution partners and creating compelling content that resonates with fans. The coming months will be crucial as the LFP and DAZN navigate this new phase and work towards a mutually beneficial future for French football broadcasting.
