Ligue 1 under threat as Canal+ warns of tax rise for pay TV in France

Canal+ has warned that a proposed tax change in France could force it to reduce its investment in sport, including football, rugby and women’s football. Maxime Saada, the group’s president of the management board, said on RTL that the planned removal of the reduced value-added tax rate for pay television would create a major financial shock. The rate would rise from 10% to 20% under the proposed 2027 finance bill. Saada said Canal+ could not absorb the increase on its own and questioned who would replace the group as a major funder of French sport and cinema.

According to Canal+’s calculations, the change would cost the company €200 million every year. Saada described the proposal as a political decision without economic logic and said the authorities had not carried out an impact study. The group’s position is that doubling the VAT rate would not be an isolated accounting adjustment. It would affect its pricing, employment and ability to commit money to sports rights and other forms of content.

The first effect would be felt by subscribers, although not immediately. Saada said a rise in subscription prices would become necessary around 2028 or 2029. He also raised the possibility of a social plan within the group. Canal+ therefore presents the tax proposal as a choice with consequences beyond the company’s own accounts: customers could pay more, employees could face cuts and rights holders could receive less when contracts are negotiated or renewed.

That warning matters because Canal+ holds a central position across several major competitions. The group finances and broadcasts the Top 14, the Champions League and France’s top women’s division, now known as Première Ligue. Saada called Canal+ the leading financier of French sport. His argument is that a reduction in the company’s spending would affect several sports at the same time rather than one league alone.

Professional rugby is the clearest example of that dependence. Canal+ secured the rights to the Top 14 and Pro D2 for the 2027-2032 period in an agreement worth more than €139 million per season. The figure reported for the deal is €139.4 million per season. Saada also cited the rugby league’s own assessment that 70% of its resources come from audiovisual rights paid by Canal+. If the company reviews its investments, rugby would therefore face a direct question over how to preserve one of its main revenue streams.

Saada used Ligue 1 to show what he believes can happen when Canal+ is absent from the financing of French football. The broadcaster, historically linked to the championship, withdrew from the Ligue de Football Professionnel’s rights process in 2024 after being angered by the handling of the Mediapro crisis. The subsequent rights turbulence left French professional football with much lower audiovisual revenues and a league-produced channel that failed to deliver the expected financial solution for clubs.

His comparison also reflects the importance of European football in the current funding structure. Saada said Paris Saint-Germain earns more from the Champions League, which Canal+ finances, than from Ligue 1. The statement places the domestic championship in an uncomfortable context: even France’s strongest club can obtain greater financial value from the continental competition than from the national league. Canal+’s absence from Ligue 1 rights has already been associated with a difficult period for the competition, and a broader reduction in sports investment could add pressure to that fragile environment.

Relations between Canal+ and the LFP have improved somewhat in recent times, but the proposed tax increase could reopen tensions around the broadcaster’s future role. Saada’s message was not that a withdrawal has already been decided. It was a warning that the group would have to reconsider its commitments if the additional €200 million burden becomes law. The next stages depend on the progress of the finance bill and on how Canal+ responds to the final tax framework. Until then, Ligue 1, professional rugby and other competitions face uncertainty over the long-term strength of their principal commercial partner.