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Ligue 1 clubs will be hugely concerned given they must make decisions on contracts and transfers without knowing how much income they will have next season. Looking further ahead, there is little prospect of the league closing the revenue gap with the other ‘big five’ leagues, all of which have much larger domestic broadcast deals.
The unnamed service would offer all 306 matches at a cost of between €25 (US$26.82) and €30 (US$32.19 million) a month, with the platform available on major Internet Protocol television (IPTV) platforms in France in a bid to drive awareness and adoption.
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However, should Ligue 1 press ahead with plans for its DTC service, clubs will likely receive less than they do currently if the project goes ahead.
A league already suffering from the departure of its most high-profile player, Kylian Mbappe, may be hit by further exits if clubs need to balance their books, while incoming transfers could be limited.
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Partnering with a broadcaster avoids all of these tribulations and gives clubs the certainty they need to make long-term budgeting decisions. Any shift to DTC is a significant leap of faith – especially with just two months before kickoff.
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Up until the end of last season, Ligue 1’s domestic rights were held by Amazon, which paid €275 million (US$295 million) a season to show eight fixtures per week, with Canal+ showing the other two games via a sub-licensing deal with BeIN Sports worth €330 million (US$354 million) annually.
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The hope is that by reaching two million users, the LFP would generate more than €518 million (US$556 million) a season in subscription revenue, with income from advertisers and other opportunities helping to deliver an average of €578 million (US$620 million) per season over the five-year length of the next rights cycle.
Going DTC would be a fascinating experiment, not least for the rest of the sports industry. However, some industry observers have already expressed concerns that the LFP’s reported targets are optimistic. Indeed, many Ligue 1 clubs will still be hoping that the streaming platform will only ever remain a contingency plan.
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With just two months to go before the start of the 2024/25 campaign, the LFP has yet to agree a media rights deal for the competition amid lukewarm interest from broadcasters who have yet to submit what could be considered a satisfactory offer.
L’Équipe adds that negotiations with potential broadcasters, including Amazon, BeIN Sports, Canal+ and DAZN, are ongoing, meaning these contingency plans might never have to be implemented.
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A major European soccer league going DTC in their home market would be a watershed moment in the history of broadcasting. But make no mistake, should Ligue 1 go down this route, they will be unwilling pioneers forced by circumstance rather than compelled by any grand vision.
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The reason why no top-tier league has adopted a DTC strategy in their home market is because it’s hard work. An owned-and-operated over-the-top (OTT) platform requires significant expenses in marketing, customer service and technological infrastructure, and doesn’t offer predictable revenues.
Amazon’s cut-price deal was the result of the collapse of Ligue 1’s previous €814 million (US$873 million) a year agreement with Mediapro, which launched the Telefoot network to show the games. Canal+, frustrated at being unable to renegotiate its contract following the collapse of Telefoot and the process at which the rights were re-awarded to Amazon in 2021, took both matters to the courts and failed on both counts.
Plans for a possible DTC service were first touted earlier this month and with time running out before the first game of the season, L’Équipe reports that LFP Media, the league’s commercial arm, has presented further details of its proposal to its board of directors.
Revenue growth is one thing but after a tumultuous few years caused by the Covid-19 pandemic, the collapse of the Mediapro deal, and now a high stakes standoff, most Ligue 1 clubs will want certainty above all else.
French soccer’s Professional Football League (LFP) is reportedly pressing ahead with contingency plans to create a domestic direct-to-consumer (DTC) service to broadcast Ligue 1 matches, suggesting it could attract two million subscribers in its first year.
The LFP scrapped the formal auction process for the Ligue 1 rights last October and has since been negotiating directly with potential partners. Its previous target of €1 billion (US$1.1 billion) in annual revenue for its domestic and international rights for the 2024/2029 cycle has been abandoned, with the organisation hoping to obtain the same amount as its most recent agreements.