French Football League Engages Legal Action Against DAZN Over Broadcasting Rights
The LFP seeks a court ruling to enforce payment from DAZN, amid subscriber shortfalls and contract renegotiation demands.
The French Professional Football League (Ligue de Football Professionnel, LFP) has formally initiated legal proceedings against DAZN, the primary broadcaster for Ligue 1, in a Paris commercial court.
The action arises from a dispute over the fulfillment of payment obligations linked to a broadcasting rights agreement established during the previous summer.
DAZN is reportedly falling short of its target subscriber numbers, with current figures at approximately 500,000, significantly lower than the anticipated one million.
Under the terms of the contract, DAZN is due to make an imminent payment, identified as the fourth installment, to the LFP. However, reports indicate that DAZN has thus far remitted only half of the required payment, amounting to 35 million euros.
This situation has triggered alarm within the LFP, resulting in an emergency meeting scheduled for Wednesday afternoon.
The LFP has expressed concerns regarding DAZN's threat to suspend further payments, prompting the league to take preemptive legal measures.
The recent developments come amid growing tensions between the LFP and DAZN as both parties navigate the complexities of the broadcasting landscape in French football, particularly in light of the evolving subscription environment.
This legal dispute highlights ongoing challenges within the sports broadcasting sector, especially as companies like DAZN attempt to secure a foothold in competitive markets while facing subscriber acquisition difficulties.
The outcome of the proceedings may have significant implications for both the LFP and embattled streaming services in their pursuit of lucrative sports rights deals.
The action arises from a dispute over the fulfillment of payment obligations linked to a broadcasting rights agreement established during the previous summer.
DAZN is reportedly falling short of its target subscriber numbers, with current figures at approximately 500,000, significantly lower than the anticipated one million.
Under the terms of the contract, DAZN is due to make an imminent payment, identified as the fourth installment, to the LFP. However, reports indicate that DAZN has thus far remitted only half of the required payment, amounting to 35 million euros.
This situation has triggered alarm within the LFP, resulting in an emergency meeting scheduled for Wednesday afternoon.
The LFP has expressed concerns regarding DAZN's threat to suspend further payments, prompting the league to take preemptive legal measures.
The recent developments come amid growing tensions between the LFP and DAZN as both parties navigate the complexities of the broadcasting landscape in French football, particularly in light of the evolving subscription environment.
This legal dispute highlights ongoing challenges within the sports broadcasting sector, especially as companies like DAZN attempt to secure a foothold in competitive markets while facing subscriber acquisition difficulties.
The outcome of the proceedings may have significant implications for both the LFP and embattled streaming services in their pursuit of lucrative sports rights deals.
