DAZN, the global sports streaming platform, has escalated its legal dispute with the French Professional Football League (LFP) by demanding €573 million ($599.7 million) as compensation. The London-based service accuses the LFP of breaching its contract and deceptive practices concerning the Ligue 1 football rights, which DAZN acquired less than two years ago.
This legal confrontation, which is set to be decided by the Paris Commercial Court on February 28, is the latest development stemming from DAZN's dissatisfaction with subscriber numbers and the pervasive problem of piracy affecting its operations. According to various reports, DAZN is seeking €309 million for “deception on the goods” and €264 million for “observed failure” tied to the product it believed it bought.
Since signing its rights deal, DAZN has encountered significant challenges. Initially, DAZN projected it could attract 1.5 million subscribers; instead, the platform has reportedly only managed to gather around 500,000. With these numbers falling short of expectations, DAZN argues its operating environment has been severely undermined by piracy and insufficient promotional support from Ligue 1 clubs. The company claims some teams have failed to adequately promote the league’s offerings among their supporter bases, directly impacting subscriber growth and revenue.
The conflict came to the forefront when DAZN missed its scheduled payment, contributing only half of the expected €70 million for February. Following this, the LFP summoned DAZN to the court to demand the remainder of the payment, amid fears of cash flow issues concerning members of the league. The LFP has been relying on reserve funds to pay clubs, which have already been under financial pressure following earlier agreements with DAZN.
The crisis has been compounded by DAZN freezing its remaining €35 million payment to the league, leading the LFP to take legal action. Reports indicate both sides have initiated lawsuits, with the LFP seeking full payment of the television rights fee from DAZN, which is contracted to provide coverage until 2029. The league has been grappling with financial strain following subpar performance last season, exacerbated by the fallout from negotiations with other broadcasters, including Canal Plus.
Canal Plus, which has aired Ligue 1 matches since its inception, opted out of the recent tender process, reportedly halting their broadcast participation due to dissatisfaction with the league’s management of broadcast rights. This has deepened the LFP’s financial woes, as they scramble to maintain funds to pay member clubs, several of which have faced bankruptcy threats stemming from the mismanagement of television rights deals.
DAZN initiated its relationship with the LFP amid considerable excitement, following high-stakes bidding for the rights. The agreement was seen as part of DAZN’s commitment to enhancing the viewing experience for fans. The platform outbid competitors to secure live match rights, paying €400 million to broadcast eight matches each week. But since the season started, the streaming service has become increasingly vocal about its dissatisfaction.
During this turbulent period, DAZN has faced obstacles concerning marketing distribution of ligue matches. Sources close to the situation suggest the streamer is frustrated with the lack of assistance from clubs, which they feel is pivotal for promoting ‘Ligue 1 products’ to potential subscribers.
L’Équipe indicated this conflict runs deep, potentially dragging on for years, as both sides are firming up their legal strategies. According to reports, the LFP has rebutted DAZN’s allegations and remains adamant about receiving complete compensation for broadcast deals. The LFP previously stated it needed every penny of the TV rights fees to maintain operational integrity amid declining finance within the league.
Despite DAZN's pledges to fight for its financial interests, resolve seems distant with both parties digging in. If DAZN does not achieve its target of 1.5 million subscribers by December 2025, it can opt to exit its rights agreement, with the LFP holding the same power. The continuing negotiations highlight the inherent challenges of rights acquisition and the complications stemming from fluctuated subscriber numbers and rights integrity.
With the streaming service grappling with its growth ambitions and the LFP under constant financial scrutiny, both parties appear entrenched. The sports streaming environment is notoriously competitive, and the dissatisfaction from DAZN could cause ripple effects across the broadcasting rights market if left unresolved. Each party is watching closely as both the court proceedings loom and the future of Ligue 1 broadcasts and potential financial recovery hangs precariously.