French Football Faces Financial Reset as Media Rights Cuts Leave Clubs Scrambling

As Ligue 1 kicked off its new season, French football finds itself grappling with a significant drop in media rights revenue—a critical financial stream that underpins the future of the sport. After months of negotiations and a failed bidding process, French football clubs are now confronting a reality that falls far short of their lofty €1 billion (approx. AUD 1.66 billion) target for media rights.

Major Deals, Smaller Payouts

Two major broadcasters, DAZN and beIN SPORTS France, have secured the majority of the rights for Ligue 1 and Ligue 2 in a new deal that runs from 2024 to 2029:

• DAZN: €325 million (AUD 539 million) annually for 8 Ligue 1 games per weekend.
• beIN SPORTS France: €78.5 million (AUD 130 million) annually for 1 Ligue 1 game per weekend, plus €40 million (AUD 66 million) for full Ligue 2 coverage.

Despite these deals, the overall revenue generated from media rights has seen a sharp decline. The total gross income for French football’s top leagues in the upcoming 2024/25 season is estimated to be €501.3 million (AUD 832 million)—a 47% decrease compared to the €734 million (AUD 1.22 billion) from the 2023/24 season.

When expenses, taxes, contributions, and revenue sharing with private equity firm CVC are deducted, the net income for Ligue 1 drops even further to just €189.7 million (AUD 315 million), a far cry from the €495 million (AUD 821 million) netted in the previous season.

A Widening Financial Gap for Clubs

The decline in media rights income has serious implications for French clubs. The funds available for distribution among the 18 Ligue 1 clubs have dwindled to €154.8 million (AUD 257 million). This reduction significantly affects how much each club receives, particularly for top-performing teams that traditionally rely on larger payouts to fuel their operations and success:

• 1st-place team: Now projected to earn €16.1 million (AUD 27 million), down from €42.9 million (AUD 71 million).
• 18th-place team: Now projected to earn €5.1 million (AUD 8.5 million), down from €14.3 million (AUD 24 million).

These shrinking figures place greater financial strain on clubs, forcing them to find alternative revenue sources, most notably through player transfers. However, this reliance on transfers also presents challenges, as foreign clubs are aware of the desperate financial situation in France, which could drive down the value of transfer deals for French teams.

The Road Ahead for French Football

Historically, French football clubs have relied on two primary revenue streams: media rights, negotiated at the league level, and player transfers, which are inherently unpredictable. With the dramatic reduction in media rights income, the reliance on player transfers is likely to grow even further. In the seasons surrounding the pandemic, player transfers have already become an increasingly important revenue stream, contributing 27% of revenue, up from 18% in previous years. However, foreign clubs are fully aware of French football’s financial constraints, making transfer negotiations tougher and driving down the value French teams can extract from player sales.

This highlights the broader challenges facing French football as it navigates a post-pandemic environment where traditional revenue streams are under pressure. Sports investor and operator Achille de Rauglaudre points out that while broadcasters paid a fair price for what French football currently offers, the league’s unrealistic ambitions contributed to the disappointing outcome.

Despite these difficulties, de Rauglaudre remains cautiously optimistic, emphasising that innovative financial strategies will be crucial to securing the sustainability of French football and protecting clubs from financial collapse—a fate that befell the once-prominent FC Girondins de Bordeaux, now relegated to the 4th division.

French football’s future depends on finding a balance between realistic revenue expectations and long-term sustainability, ensuring that clubs can compete not just on the pitch, but also in the global sports business landscape.

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