DAZN faces massive €200-250 million loss from Ligue 1 broadcasting rights

Recent revelations from a court-appointed mediator have exposed the severe financial strain DAZN faces with its Ligue 1 broadcasting rights. The streaming platform is projected to lose between €200 and €250 million during the current season alone, creating a precarious situation for both the broadcaster and French football’s top division. This financial hemorrhage has prompted DAZN to adopt an aggressive stance in ongoing negotiations with the Professional Football League (LFP).

In Short

DAZN’s financial nightmare with Ligue 1 rights

DAZN secured the rights to broadcast eight out of nine Ligue 1 matches per matchday at an average annual cost of €375 million, with beIN Sports holding rights to the remaining fixture. This substantial investment was intended to establish DAZN as the premier football broadcaster in France, but the financial reality has proven catastrophic. According to information revealed during mediation sessions on April 7, 2025, the platform’s losses this season are estimated to fall between €200 and €250 million.

The financial breakdown shows DAZN paying €325 million to the LFP this season alone, with this figure set to increase annually under the current agreement. When additional operational expenses are factored in—including editorial staff, consultants, travel, accommodations, marketing, and advertising—the total expenditure reaches approximately €360 million. With subscriber numbers hovering around just 500,000, revenue generation is estimated at only €120 million, creating a devastating deficit.

This significant financial imbalance explains why DAZN threatens to cancel its Ligue 1 TV rights deal, leading the LFP to call emergency meetings to address the crisis. The situation represents one of the most substantial broadcasting losses in European football history, highlighting the challenges of valuing sports rights in today’s evolving media landscape.

Predictive models clearly failed to anticipate the actual market performance, raising questions about the due diligence conducted before the deal was finalized. For those following the business side of football, these developments suggest that accurately forecasting viewership and subscription trends requires more sophisticated analytical approaches than traditionally employed.

Legal battles and negotiation deadlock

The financial crisis has escalated into a legal confrontation, with DAZN claiming €573 million from the LFP for alleged breach of contract and “misleading merchandise” practices. This legal challenge has necessitated court-mandated mediation to resolve the dispute, though progress appears limited. During Wednesday’s mediation session, club presidents were informed by the mediator that the LFP has minimal leverage against DAZN’s demands for substantial contract reduction.

Club presidents proposed a potential compromise whereby DAZN would fulfill its financial obligations for the remainder of the current season and pay a €200 million compensation fee for the 2025-2026 season. However, the mediator quickly dismissed this suggestion as unrealistic, indicating that DAZN would never accept such terms given its current financial position.

The situation has become increasingly tense since February when DAZN threatened to withhold its February payment, raising serious concerns about the stability of the broadcast arrangement. This move prompted immediate reaction from the LFP, which has been desperately trying to maintain the integrity of its primary revenue stream.

As negotiations continue under judicial supervision until the end of the week, all parties acknowledge the uncertainty of the outcome. If no resolution is reached by Friday, the mediation period, which has already been extended once, may be prolonged further. The uncertainty creates significant challenges for clubs that rely heavily on broadcasting revenue for their operational budgets.

Implications for French football’s financial landscape

The broadcaster’s financial difficulties pose serious consequences for Ligue 1 clubs that depend on media rights distributions. With DAZN signaling it may abandon the contract entirely after this season without substantial renegotiation, French football faces a potential financial cliff. The timing is particularly challenging as clubs are already planning their budgets and transfer strategies for the upcoming season.

In March, the situation escalated when DAZN paid only half of its Ligue 1 TV rights bill, prompting the LFP to file a lawsuit for non-payment. This partial payment highlighted the broadcaster’s increasingly desperate financial position and unwillingness to continue under the current terms.

Notable among the attendees at Wednesday’s critical meeting was the absence of Marseille president Pablo Longoria, who remains suspended following his outburst against match officials after his team’s 3-0 defeat to Auxerre on February 22nd. This sideshow demonstrates how the broadcast crisis is unfolding against a backdrop of other ongoing challenges in French football governance.

The public nature of this dispute became even more evident when DAZN’s France CEO addressed the Ligue 1 TV rights crisis in a live statement, attempting to explain the company’s position while maintaining some confidence in potential resolutions. This unprecedented public communication underscored the gravity of the situation.

For football observers and stakeholders alike, these developments have created unprecedented uncertainty. The resolution of this crisis will likely establish new precedents for how broadcast rights are valued and negotiated in European football, with potential ripple effects across other leagues and broadcasting partnerships.