LNR defends Canal+ over VAT increase

The LNR, representing French rugby, is defending Canal+, its long-term broadcasting partner, against a proposed increase in the value-added tax (VAT) on pay television services. The change, included in the 2027 finance bill, would raise the VAT rate from 10% to 20%, aligning it with the standard rate applied to most goods and services, including platforms like Netflix.

Canal+ warns of subscription price hikes

In a statement released on October 1st, Canal+ warned that the proposed VAT increase could lead to higher subscription prices for its services. The broadcaster also highlighted its financial contributions to the arts and sports, including cinema and rugby, in an effort to show its broader societal impact.

Rugby's media dominance over football

French rugby has enjoyed a strong position in media coverage, particularly since the 2023 World Cup held in France. This has helped Canal+ maintain strong weekly audiences, even though it has not broadcast Ligue 1 football for several years. The sport’s media prominence has helped offset its traditional lag behind football in public interest.

Canal+ is central to rugby finances

Television rights account for about two-thirds of the Ligue's revenue, with clubs receiving 20 to 30% of the total revenue from these rights. This is the second largest source of income for the 30 professional clubs, after revenue from sponsorships and ownership. Yann Roubert, president of the LNR, described Canal+ as "a true partner" in building the sport's profile over three decades.

Rugby's economic impact and job creation

According to Yann Roubert, the French rugby industry generates around 1.3 billion euros in economic activity and supports more than 5,000 jobs. He argues that replacing Canal+’s role would be unrealistic, as no other entity has submitted a bid for the current television rights contract, which runs until 2032.

LNR seeks political support

Yann Roubert has written to the President of the Republic, the Prime Minister, and various government ministries, emphasizing the economic and social contributions of professional rugby. He highlighted that the sport generates about 180 million euros in tax and social contributions annually, which he claims provide about 4 euros of public benefit for every euro of public support.

Cross-party support for LNR's cause

Several amendments to remove the controversial VAT increase from the finance bill have already been proposed, with support from members of the Republican Right, LR, the Socialist Party, and others. Yann Roubert described the issue as "transpartisan," suggesting it has broad political appeal despite the current political divisions in France.

Rugby's allies in the fight

The LNR is not acting alone, with support from the National Association of Professional Sports Leagues, sports federations, and the CNOSF. Yann Roubert says the rugby community is trying to raise awareness of the potential economic consequences of the VAT increase, and now the outcome depends on the decisions of French parliamentarians.