The French government has proposed increasing the value-added tax (VAT) on pay television services from 10% to 20%, a change that would significantly affect Canal+, a major French broadcaster. This move has raised concerns about its potential impact on professional French rugby, as Canal+ is a key financial supporter of the sport. According to L'Équipe, the French Rugby League (LNR) has directly addressed the Élysée, the official residence of the French president, with its president, Yann Roubert, writing to President Emmanuel Macron to warn him about the risks of the proposed tax increase.
Canal+ is the primary financier of professional French rugby, holding broadcasting rights for the Top 14 and Pro D2 leagues. These contracts are estimated to be worth 140 million euros per season between 2027 and 2032. In a letter obtained by L'Équipe, Roubert expressed concerns about the impact of the tax change on the financial balance of the LNR. He noted that television rights account for 70% of the league's revenue, while the distribution of funds makes up 20 to 30% of the income for the 30 professional clubs.
The LNR also highlights the broader economic implications of the proposed tax, pointing out that 5,133 direct and indirect jobs are linked to the broadcasting rights, and 13 million euros are annually reinvested into amateur rugby. Any reduction in Canal+'s ability to invest could ripple through the entire rugby ecosystem, affecting not only professional teams but also amateur players and related industries.
Roubert stressed that there is no clear alternative to Canal+'s current role as the main investor in French rugby. He noted that during the last LNR tender in 2024, Canal+ was the only bidder, underscoring the lack of competition in the market. This concern comes at a time of financial strain in France, where the public deficit is expected to remain high, and the government is seeking ways to reduce it. The proposed VAT increase is part of these efforts to restore public finances. The LNR's letter warns that the change could pose an "extreme danger for rugby," emphasizing that preserving Canal+'s investment capacity is crucial to maintaining the sport's stability and growth.
French Government's Proposed VAT Increase Sparks Concerns Over Rugby Industry
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