During a hearing in front of a Senate committee on June 26, 2024, Vincent Labrune, the president of the Professional Football League, tried to reassure the audience that French professional football clubs will not be left in financial ruin after the prolonged negotiations for the sale of television rights for the 2024-2029 cycle. With the current broadcasting contract set to expire on June 30, the League is facing a crisis as they have not been able to secure a broadcaster for the upcoming season. Labrune hinted at a risky “plan B” to create and market their own channel with all Ligue 1 matches if no agreement is reached.
Labrune, dressed in a blue jacket and thin glasses, faced tough questioning from the Senate committee at a pivotal moment. With no distribution agreement between BeIN Sports and Canal+, the League is scrambling to find a solution. Labrune acknowledged that if a deal with Canal+ cannot be reached, the clubs may face a less profitable outcome, but he suggested turning this challenge into an opportunity by creating their own media platform. However, he admitted that he was not in control of the timeline for resolving the broadcasting issue and recognized the sense of betrayal felt by Canal+ since the financial collapse of Mediapro.
The creation of a commercial company, LFP Media, in 2022 through an agreement with the Luxembourg-based investment fund CVC Capital Partners was a major point of discussion during the hearing. The deal involved selling 13% of the company for €1.5 billion to CVC in exchange for 13% of the company’s profits. Labrune defended this arrangement as a “win-win model” that would protect clubs in case of a decrease in television rights revenue. However, the Senators expressed skepticism and raised concerns about the optimistic commercial projections made by the League in 2022, which do not align with the financial realities faced by many clubs.
Despite Labrune’s optimism, the Senators highlighted the discrepancy between the League’s business plan and the financial struggles of many clubs, who are unable to plan their budgets without knowing the amount of domestic broadcasting rights revenue they will receive. The implications of the agreement with CVC were questioned, with some suggesting that French football clubs may have compromised their future in exchange for uncertain benefits. As the uncertainty surrounding the broadcasting rights situation continues, the financial stability of French football clubs remains a pressing issue that needs to be addressed.
In conclusion, Vincent Labrune’s testimony before the Senate committee shed light on the challenges facing French professional football clubs regarding the sale of television rights for the upcoming cycle. The lack of a distribution agreement between broadcasters has led to uncertainty and raised questions about the financial stability of the clubs. Labrune defended the creation of LFP Media and the partnership with CVC as a means to protect clubs in case of a decrease in revenue. However, skepticism remains among Senators who question the long-term implications of these arrangements. The future of French football will depend on finding sustainable solutions to ensure the financial viability of the clubs amidst a changing media landscape.
