Report: DAZN Refuses to Pay Rights Fees for Events Canceled Due to Covid-19
The coronavirus put a screeching halt to many sporting events, leaving a void for many networks and streamers who usually peak during this season. It seems as though DAZN is already feeling the heat as they are refusing to pay for events that were canceled or postponed due to the pandemic.
According to Sports Business Daily, sources have revealed that DAZN “has started telling sports leagues that it will not pay rights fees for any games that have been suspended or content that has not been delivered because of the coronavirus pandemic.”
The streamer has also alerted various leagues that payments for upcoming seasons have to be deferred until the pandemic has stabilized and leagues give specific dates on when seasons will start again. DAZN, however, will continue to pay for the game it has already streams.
The move is believed to be the first of its kind as “most media rights contracts mandate that networks continue to make payments even when games are not played. In the past, those payments have occurred during various work stoppages,” Sports Business Daily reports.
DAZN holds right to events by the MLB, Champions League, WTA Tour and MotoGP in various markets.