Belgium fines DAZN as worries mount over future of football broadcasting deal
Belgium is fining streaming platform DAZN for violating rules on pre-contractual information, Consumer Protection minister Rob Beenders announced on Sunday. The fine comes as concerns mount over the future of the platform’s broadcasting deal for Belgium’s top football competition.
The Economic Inspectorate launched an investigation into DAZN last summer after receiving complaints about unclear terms and matches becoming unavailable after payment. On Sunday, Beenders announced that the company would be fined for failing to comply with pre-contractual information obligations.
In the same statement, he voiced concern over reports of a contractual dispute between DAZN and the Belgian Pro League, which has kept football from TV screens. "In that respect, I don’t find them trustworthy," he said.
No deal finalised
The streaming service had agreed to pay 84 million euros per season for the broadcasting rights over the next five years. Under the terms of the tender, DAZN must reach a commercially viable agreement with at least two distributors. However, no deal has yet been finalised.
As a result, Pro League matches are currently only available via DAZN’s own streaming platform, not on traditional TV channels, where most fans still watch football.
"In that respect, I don’t find them trustworthy"
Beenders fears DAZN may seek to withdraw from the contract unilaterally. This concern is shared by many Belgian clubs, Het Nieuwsblad reported on Monday. Several teams worry about a repeat of the situation in France, where DAZN ended a five-year deal for Ligue 1, worth around 2 billion euros, after just one season.
Worries over profitability
Confidence in the future of the agreement is further eroded by reports about DAZN’s leadership aiming for profitability. The Guardian recently reported that the company was eyeing broadcasting rights for the Champions League. Dropping costly, long-term deals such as the Belgian Pro League contract could support those two goals.
DAZN maintains it will honour its contract. However, clubs are already exploring alternatives, including the possibility of the Pro League launching its own TV channel and outsourcing production and distribution.
But setting up such an enterprise would take months, while DAZN could decide to withdraw from its current deal with immediate effect. In that scenario, the Pro League would be caught unprepared, leaving football fans without any broadcasts of Belgian football.
© BELGA PHOTO VIRGINIE LEFOUR
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