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Break with DAZN: financial challenges and uncertainties for Ligue 1

The Ligue de Football Professionnel (LFP) took the decision to terminate its partnership with the DAZN broadcasting platform prematurely, a contractual breach that is financially difficult for French professional football. In accordance with the deliberations of the college of presidents of Ligue 1 clubs, followed by the board of directors of the Ligue 1, this separation takes place one year before the original date of exit. This decision involves substantial financial compensation, including a payment of EUR 140 million for the remainder of the current season, as well as an estimated compensation of between EUR 110 million and EUR 125 million for the following season, amounts that DAZN, faced with economic difficulties, seems willing to honour.

This situation poses a major challenge to the LFP, as the contract originally concluded was estimated at EUR 1.5 billion over several years. The main obstacle is the limited number of DAZN subscribers, which is capped at approximately 550 000, well below the target of 1.5 million subscribers set for 2026, a condition linked to an exit clause that is advantageous to the LFP. The amount of compensation in the event of an early break is therefore considerably reduced, failing to achieve the initial hopes of Ligue 1 clubs, which relied on a substantial increase in revenues from broadcasting rights to improve their financial situation.

The future of Ligue 1 is expected to be uncertain, with budgetary projections becoming arduous without clear visibility on future audiovisual revenues. Investments in staff and infrastructure may be suspended pending a possible re-tendering in a prudent market context. The LFP must therefore act quickly to find a solid alternative and restore the confidence of clubs and supporters, raising crucial questions about the emergence of potential new players, such as Amazon, or the interest of BeIN Sports or Canal+.