A dispute between the Professional Football League (LFP) and DAZN over a 35 million euro payment for TV rights remains unresolved, with a ruling expected by February 28. The LFP is concerned about the financial strain on clubs, while DAZN justifies withholding payments due to operational challenges. Both parties are engaged in negotiations, and DAZN’s future with the LFP, which runs until 2029, could be at risk if subscriber targets are not met.
Ongoing Dispute Between LFP and DAZN
The conflict between the Professional Football League (LFP) and its broadcasting partner DAZN regarding a pending payment of 35 million euros for TV rights is set to remain unresolved until February 28. This extended timeline poses significant challenges for clubs already facing financial strain.
The legal proceedings are in progress, with the Paris commercial court handling the case under urgent summary proceedings. However, a ruling will not be made until the end of the month, despite the fact that the total amount due (70 million euros) was originally expected by January 30.
Patrick Sayer, the court’s president, acknowledged that the delay is far from ideal for professional football. However, he emphasized the importance of thoroughness when dealing with a complex 110-page case file.
Yves Werhli, an attorney for the LFP, expressed concerns over the financial expectations of clubs, stating, “Clubs anticipate receiving their funds precisely on schedule, aligning all obligations with the TV rights timetable.” He further warned that allowing a broadcaster to independently navigate legal matters poses a serious risk to clubs.
In response to the financial gap, the LFP is actively seeking solutions to ensure that clubs receive necessary payments promptly. A source connected to the League reassured that they are committed to supporting clubs in distress.
DAZN’s Strategy and the Future of Ligue 1
The same source criticized DAZN for allegedly attempting to stall the process by submitting a lengthy document just hours before the hearing, which hindered a timely decision. During the proceedings, President Sayer humorously noted the lack of sleep surrounding the case.
Philippe Diallo, president of the French Football Federation (FFF), highlighted the precarious situation faced by clubs in Ligue 1 and Ligue 2, stressing that some may even be forced to cease operations before the season concludes.
DAZN, the British sports streaming platform responsible for broadcasting eight out of nine Ligue 1 matches each matchday, justified withholding part of the installment due to challenging operational conditions, including issues related to piracy and inadequate marketing support from certain clubs.
Jean-Luc Larribau, representing DAZN, claimed that the LFP has not fulfilled its obligation to provide exclusive rights and has failed in its marketing responsibilities. In contrast, Thibaud d’Alès, the LFP’s lawyer, contended that DAZN’s obligation to pay the outstanding amount is indisputable.
Despite the ongoing court disputes, both parties are reportedly engaged in negotiations to reach a resolution. Brice Daumin, DAZN’s head in France, indicated that he presented an action plan to the LFP in mid-December aimed at enhancing exclusivity, tackling piracy, and improving club support, but has yet to receive a response.
Following a partial payment of 35 million euros on February 5, DAZN placed the remaining amount in escrow while awaiting a response from the LFP. The League has since filed a second summary proceeding to request a conservatory seizure of these funds, with a court ruling expected on February 21.
Currently, DAZN boasts 500,000 subscribers, a far cry from the anticipated 1.5 million by December 2025. Failure to meet this target may give DAZN the option to terminate its contract with the LFP, which is valid until 2029. However, Daumin made it clear that they have no intention of activating such a clause, as it would be detrimental for all parties involved.