taste2taste
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Geeez only 500k subs in a country of 70m for France’s number 1 sport.DAZN has rejected a proposal from the French Professional Football League (LFP) to terminate its five-year domestic rights deal for Ligue 1 after just one season.
The sports streaming service had initially agreed a five-year contract worth €400 million (US$453.8 million) per year to show eight of the nine Ligue 1 games held each week.
However, it has been keen to renegotiate its deal due to low subscriber numbers. It is believed to have just 500,000 signups for its service, which is significantly short of the 1.5 million it needs to break even on its investment.
In February, DAZN withheld half of its €70 million (US$79.4 million) payment, alleging that the LFP had not done enough to combat piracy. It also blamed the league and clubs for failing to promote its coverage and for not cooperating on content. The LFP proceeded to take DAZN to court for its owed money, which DAZN eventually paid at the end of the month.
Both sides then entered a mediation process in March in an attempt to find a compromise. According to multiple reports, the mediator offered a solution that would see DAZN pay the league €140 million (US$158.8 million), the full amount it owes for this season, and an additional fee of up to €125 million (US$141.8 million) in compensation for the following campaign. The deal with DAZN would then be terminated at the end of the current season.
At a meeting held this week, Ligue 1 clubs voted in favour of the proposal. However, DAZN has now rejected the offered solution, opening the door for formal legal action to take place.
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DAZN rejects LFP proposal to terminate Ligue 1 deal - SportsPro
French top-flight clubs had voted to end the league's five-year domestic rights agreement after just one season.www.sportspro.com
Hmmmm
Its a gamble for streamers having to guess how much to pay and charge for sports not knowing how many ppl will sign up.