European Media Rights Tenders Market: Premier League, Serie A LFP
Oct 27, 2023
In the ever-evolving world of media rights, the playing field is heating up as major football leagues gear up to renew their lucrative deals for the years to come. These negotiations are about more than just securing broadcasting partnerships; they're a reflection of the rapidly changing media landscape. As the industry shifts, successful leagues must adapt to stay ahead of the game. In this exploration of European Media Rights Tenders, we delve into the Premier League, Serie A, and LFP's quest for lucrative deals in the media rights market, navigating challenges and opportunities in an industry where the stakes have never been higher. At LaSource, we believe in building a solid business strategy around media by anticipating trends to future-proof your plans. Read along for our insights amid an exciting and informative media rights tender landscape.
Premier League
The English Premier League is arguably one of the most valuable media properties that has yet to secure its media partners for the upcoming years. The league has dominated the media rights market in European football for years, and the upcoming tender is expected to solidify its dominance further. However, it does not come without its fair share of challenges.
Currently, Sky, TNT Sport, and Prime Video are the three domestic broadcasters, with the first two sharing the central part of the cake and the latter a small package of rights towards the end-of-year celebrations. However, the league's desire to decrease the number of packages from seven to five will likely reduce the likelihood of a "Christmas package" being up for grabs, making it more difficult for broadcasters to use the product for external commercial activities simply. This will likely drive up competition in a stagnating rights market in the UK, especially given that the cycle's duration will also be extended to four years, making the investment more attractive for potential partners.
Another challenge is the Premier League's decision to keep the 3pm blackout in place, meaning that 110 matches will not be broadcast or livestreamed in the UK. This decision is intended to preserve stadium attendance on Saturday afternoons, but it will fuel the ongoing debate around piracy. In 2022, almost four million people illegally streamed live sports in the UK, making it a genuine concern for premium IP owners like the EPL.
Despite these challenges, it is doubtful that the Premier League will suffer from a drop in its media rights revenue, as it keeps providing value for its partners and has succeeded in its global initiatives and internationalisation strategy.
Ligue de Football Professionnel
Despite an unsatisfactory bid and the LFP cancelling Ligue 1 domestic rights auction bids, LFP will aim to near their objective of a 42% increase in its media rights revenue (domestic and international) for the cycle starting in 2024. The primary focus was on enhancing international rights revenue, with a bold target of a 150% increase compared to the previous cycle, although the departure of star players Messi and Neymar has left a void to fill.
Canal+, a long-time participant, previously decided not to partake in the LFP tender for the first time in nearly four decades, opening the door for newcomers like DAZN and BeIN. However, it is important to note that due to the unsatisfactory rights auction bids, the LFP can now go directly to broadcasters, possibly reintroducing Canal +.
It is also crucial to consider that the LFP is deliberately reducing the number of media rights packages in an effort to create scarcity, foster competition, and encourage deeper partnerships, differentiating itself from the more fragmented media rights packages proposed by Serie A.
Notably, Canal+ might be considering a role as an aggregator, and a potential partnership with DAZN could pave the way for this shift. The positions held by Prime Video and DAZN in the market are expected to play a pivotal role in generating competition. This strategic approach reflects the LFP's determination to secure a more lucrative future for its media rights, both domestically and on the international stage.
Serie A
As of October 23, 2023, it has been announced that DAZN and Sky retain rights with a new 5-year agreement after the clubs approve a reported ‘€4.5bn’ Domestic rights deal. However, several key factors concerning the league and its potential partners need to be considered with the announcement of this deal.
One of the biggest challenges is Italy's relatively low-quality digital infrastructure and streaming apps. This could make accessing Serie A matches difficult for some users, mainly if they are only available on non-linear streaming platforms. Serie A considered going D2C, which presented the issue of the league's ability to deliver this platform correctly. Due to this, they opted for the safer option with previous broadcasters.
However, this option was not without conflict; conflict between broadcasters and league and league and clubs. Again Serie A’s possibility of a D2C platform arose due to unsatisfactory bids as the league wanted to rack in €1bn per season. This means Serie A needed to concede on that number as the deal is worth €4.5bn over 5 years. This was a point of contention for bigger teams like Napoli that crave a direct-to-fan relationship, along with other criticism of the deal, including the length.
Serie A set a more sophisticated rights packaging and structure to stimulate competition and attract new players in the race, but it could have presented a challenge for potential partners to negotiate deals due to the causes and insurance. Another attraction may have been the expansion of media rights cycles from three to five years, making the deals more appealing to DAZN and SKY, who could invest more in the product.
The piracy problem also plagues Serie A, as the league must address this issue, which remains a significant problem in Italy. If the league is unable to crack down on piracy, it could have a negative impact on the value of their media rights in future cycles.
Despite these challenges, the Serie A media rights tender is still set to be lucrative for the league, with reportedly US$744 million from DAZN and US$213 million from Sky coming in per season. The league has several attractive assets, including some of the biggest clubs in the world and a passionate fan base eagerly awaiting what is in store for the next 5 years.
The European Media Rights Tenders Market is witnessing significant changes as major football leagues, like the Premier League, Serie A, and LFP, seek lucrative media rights deals. These negotiations reflect the leagues' adaptability in a changing media landscape. With the Premier League's aim to maintain its dominance, LFP’s unsatisfactory bidding round, and Serie A’s conflictual environment, it is a great time to be a sports business enthusiast. These current conversations are setting the scene for the new wave of the media rights market.