The news that French broadcaster Canal has actually handed back its media rights to Ligue 1 and required a fresh bidding process might have major implications throughout Europe.
The company was due to evaluate two video games weekly under the terms of a sub-license agreement with beIN Media, however this has actually now been cancelled.
Canal President Maxime Saada informed Le Figaro that Ligue 1 ‘has been subsidised for several years’ which ‘no broadcaster has actually prospered in making it successful’.
Saada likewise argued that with components including significant clubs like Paris Saint-Germain being more financially rewarding than other matches, the media rights offer need to show this.
” There is only one method to objectively and transparently materialise the market worth of Ligue 1, and that is the call for tenders,” he said.
” We are going to provide the LFP a universal technical solution that will enable all French individuals, whether subscribers to Canal or not, to follow the matches in pay-per-view.
” Obviously, Canal would donate the majority of the profits to the LFP, and therefore to the clubs.”
The current row over media rights follows the collapse of a broadcast deal in between Ligue 1 and Spanish multimedia group Mediapro and leaves clubs facing huge financial problems.
Similar to other major leagues, the French top flight is greatly reliant on income from broadcasters and sponsorships from major brand names.
With other top European leagues seeing their broadcast revenue level off or dip in value in current times, the advancements in France are plainly worrying for football.
Tv marketing profits fell by around 17 percent in Western Europe last year, which will have a major impact on broadcasters who purchase media rights.
The scenario in France highlights that the Premier League and other significant European competitions may well have to reign in their expectations when the next TELEVISION deals are being worked out.