French sports organisations are raising concerns over a proposed 20% tax on pay-TV services, warning that the measure could increase costs for broadcasters and put pressure on the value of sports media rights.
According to SportBusiness, concern is growing across the French sports sector ahead of a key ministerial meeting, with industry representatives warning that the proposed tax could “weigh on the valuation of sports rights”.
The proposed levy would add a significant new cost to pay-TV operators at a time when broadcasters are already facing pressure over subscriber numbers, content costs and the changing economics of sports streaming.
Broadcasters could face higher costs
The main concern for sports bodies is that an additional tax burden could affect the amount broadcasters are willing to pay for premium sports content.
Sports rights fees are closely linked to the revenues broadcasters can generate from subscriptions, advertising and distribution. A higher tax bill could therefore put pressure on rights budgets, particularly for high-value properties such as football.
France already has a levy linked to the audiovisual exploitation of sports rights. The existing contribution is set at 5% of the transfer of audiovisual broadcasting rights for sporting events, with revenues used to support sport. The proposed 20% pay-TV tax would represent a significant additional burden on the sector.
The debate comes as France’s sports media market is already undergoing structural changes. Ligue 1 has been exploring new direct-to-consumer models through LFP Media and Ligue 1+, while traditional broadcasters continue to reassess the economics of premium sports rights.
The French government is expected to discuss the potential impact of the proposed tax with representatives from the sports and broadcasting sectors.
The final scope and implementation of the 20% levy have yet to be determined, but the debate highlights the growing pressure on the economics of sports media rights in France.
For sports organisations, the key concern is that higher taxation could ultimately reduce the amount broadcasters are prepared to invest in rights, potentially affecting the value of future media deals.