DAZN in preliminary deal for fourth major market: Ligue 1 rights value drops 14%
After an arduous ten-month process, France’s Ligue 1 has reached a tentative deal to license its 2024-29 broadcasting rights at a price 14% down on the previous cycle.
Adding France (for €400 million p.a.), DAZN now has prominent positions in four out of the five big European markets. With a weekly top pick (for €100m p.a.), beIN consolidates its model.
Attention turns to distribution, and whether DAZN will patch up its partnership with Canal+.
Related reports
In a display of chutzpah, Mediapro acquired the Ligue 1 domestic broadcasting rights from 2020-24 in what is the most disruptive shock to the French broadcasting industry in a generation; one that is likely to accelerate Canal+’s decline, force a review of the outdated regulatory framework, and possibly spur an M&A spree.
The Mediapro move only makes sense as a highly speculative bid to resell the rights, or a dedicated channel, to French platforms in 2020. The odds are high that the broker ultimately fails to fulfil the contract, as just happened in Italy, where Sky is now expected to get the Serie A licence.
Precedents of new entrants acquiring domestic top-flight rights bode poorly for Mediapro, and for the league. The Ligue 1 may live to regret the introduction of a ‘re-sell right’ into its licensing terms.
France's Ligue 1 rights auction: Will Amazon cut back and DAZN step in?
15 September 2023Ligue 1 wants to break with its recent history of failed tenders, declining revenues and soured relations with incumbent Canal+.
This year’s would-be bidders have no history of inflating rights costs. Thanks to its distribution deals with DAZN (likely to step in) and beIN, Canal+ may feel secure, while Amazon could let its coverage shrink to a selection of key matches.
The LFP is taking steps to offer a more enticing competition, in partnership with CVC: with fewer teams, a stronger brand and new investors.
Sports clubs, leagues and federations are accelerating investment in their direct-to-consumer strategies, developing next-generation apps and streaming services.
Objectives include gathering first-party fan data, diversifying revenue streams, and extending reach in growing markets and among younger audiences.
New league streaming apps supplement broadcaster coverage in core markets and enable new partnership arrangements with incumbent pay-TV operators and online video marketplaces.
Private equity and football: An adult in the room
19 December 2022CVC Capital Partners has acquired stakes in the top Spanish and French football leagues, and has been in talks with Germany’s and Italy’s alongside other private equity (PE) firms.
Clubs are after an immediate post-Covid capital injection, and the steady cashflows from media rights are attractive to PE firms. CVC has gained management influence, and tighter cost control should help channel the money into clubs’ stadiums and academies.
Even if the stakes were sold from a position of weakness, PE could help to align the traditionally fractious clubs with the leagues, bringing about a more robust approach across rights deals and investment in commercial potential.
In a display of chutzpah, Mediapro acquired the Ligue 1 domestic broadcasting rights from 2020-24 in what is the most disruptive shock to the French broadcasting industry in a generation; one that is likely to accelerate Canal+’s decline, force a review of the outdated regulatory framework, and possibly spur an M&A spree.
The Mediapro move only makes sense as a highly speculative bid to resell the rights, or a dedicated channel, to French platforms in 2020. The odds are high that the broker ultimately fails to fulfil the contract, as just happened in Italy, where Sky is now expected to get the Serie A licence.
Precedents of new entrants acquiring domestic top-flight rights bode poorly for Mediapro, and for the league. The Ligue 1 may live to regret the introduction of a ‘re-sell right’ into its licensing terms.
France's Ligue 1 rights auction: Will Amazon cut back and DAZN step in?
15 September 2023Ligue 1 wants to break with its recent history of failed tenders, declining revenues and soured relations with incumbent Canal+.
This year’s would-be bidders have no history of inflating rights costs. Thanks to its distribution deals with DAZN (likely to step in) and beIN, Canal+ may feel secure, while Amazon could let its coverage shrink to a selection of key matches.
The LFP is taking steps to offer a more enticing competition, in partnership with CVC: with fewer teams, a stronger brand and new investors.
Sports clubs, leagues and federations are accelerating investment in their direct-to-consumer strategies, developing next-generation apps and streaming services.
Objectives include gathering first-party fan data, diversifying revenue streams, and extending reach in growing markets and among younger audiences.
New league streaming apps supplement broadcaster coverage in core markets and enable new partnership arrangements with incumbent pay-TV operators and online video marketplaces.
Private equity and football: An adult in the room
19 December 2022CVC Capital Partners has acquired stakes in the top Spanish and French football leagues, and has been in talks with Germany’s and Italy’s alongside other private equity (PE) firms.
Clubs are after an immediate post-Covid capital injection, and the steady cashflows from media rights are attractive to PE firms. CVC has gained management influence, and tighter cost control should help channel the money into clubs’ stadiums and academies.
Even if the stakes were sold from a position of weakness, PE could help to align the traditionally fractious clubs with the leagues, bringing about a more robust approach across rights deals and investment in commercial potential.