DAZN's Dispute With Ligue 1 Could Be a Warning Signal for European Leagues

The French Ligue 1's declining media rights problem seems poised to be compounded by a legal dispute with its main domestic broadcaster, DAZN. This commentary looks at the potential financial impact on football leagues in France and beyond.

Key highlights include:
-- DAZN is claiming a EUR 573 million compensation fee from the French league after the number of subscribers ended up well below estimates.
-- The decrease of TV rights in France and significant expected losses for the 2024/25 football season will ultimately affect the competitiveness of the French league over the medium term.
-- The situation highlights growing concerns around the future of the TV rights landscape in Europe.

"We see recent developments linked to this broadcaster as a warning signal for the European leagues", says Manuel Gutierrez, Vice President, Corporate Ratings. "DAZN's increasing presence in European TV rights has created significant market concentration and barriers to entry that could lead to renewal risk for leagues that have already sold TV rights to the broadcaster".