Football News Update: Labrune Faces Tough Challenge as Ligue 1 Broadcast Revenues Plummet
In a move that has shaken the footballing world, Vincent Labrune, the president of the Ligue de Football Professionnel (LFP), is facing a daunting challenge as French clubs in Ligue 1 brace for a potential financial crisis.
Labrune, who took office in 2020 with a pledge of “unity,” is now at the center of a storm, as the failure to secure a lucrative new TV rights deal has left several Ligue 1 clubs on the brink of financial ruin.
When Amazon declined to renew its cut-price deal worth €250 million per season, Labrune made a bold prediction, estimating that broadcast revenues could surpass €1 billion annually in the new four-year cycle. However, this prediction has now come back to haunt the former communications executive.
The Disappointing TV Rights Deals
After months of negotiations, the current offers on the table fall far short of Labrune’s projections. The first offer, from DAZN, is worth almost €400 million per season, while a potential deal with Warner Bros Discovery’s Max streaming service could generate up to €600 million annually.
These figures are a far cry from the €800 million deal signed with Mediapro in 2018, which ultimately collapsed, leaving French clubs on the verge of bankruptcy. Experts suggest that under the DAZN deal, the winners of next season’s Ligue 1 title could receive less than the €6 million given to Clermont, who finished bottom in the previous season.
“The situation is killing the chance of investors coming to French football.”
The former president of a Ligue 1 club, who wished to remain anonymous, described the situation as a “choice between the plague and cholera,” highlighting the dire consequences for clubs that are not owned by billionaires like Nice, Monaco, Saint-Étienne, or Paris Saint-Germain.
LFP’s Financial Challenges
The creation of LFP Media, a commercial entity owned in part by American investors CVC, has also come under scrutiny, as the clubs’ short-term needs were resolved through a loan. However, there are concerns that the new TV rights package will force many clubs to take drastic measures, including player sales and wage cuts.
As the crisis deepens, the French Senate is investigating the LFP’s spiraling costs, which have risen from €40 million to €120 million since Labrune’s election. The former president of a Ligue 1 club expressed doubts about the league’s ability to attract new investors, stating, “The situation is killing the chance of investors coming to French football.”
With the start of the new Ligue 1 season just over a month away, Labrune and the LFP face a daunting challenge in securing a TV rights deal that can sustain the top clubs in France and prevent a potential financial collapse of the league.
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