French Rugby Mobilizes Political Allies Against Tax Hike

French professional rugby faces a severe financial threat as Canal+ threatens to cut its sports investments following a proposed government tax hike on pay-TV operators. The French government’s draft 2027 finance bill includes a provision to scrap the reduced 10 percent value-added tax rate on pay-television subscriptions, raising it to 20 percent alongside on-demand platforms like Netflix, rugbyrama.fr reported.

Canal Plus Threatens Investment Cuts Over Value-Added Tax Hike

The private audiovisual group warned in an October 1 statement that the tax increase would have a direct impact on subscription prices, workforce numbers, and financial contributions to the cinema and sports ecosystems. Canal+ serves as the primary financial backer of French rugby, committing to rights through 2032 as the sole bidder during the Ligue Nationale de Rugby tender process in 2024. If the budget passes without modification, the broadcaster’s reduced capacity to invest directly jeopardizes the economic stability of the entire rugby ecosystem.

Ligue Nationale de Rugby Mobilizes Political Allies Against Tax Article

LNR President Yann Roubert warned that television rights make up roughly two-thirds of the league’s revenue, with distributions to clubs accounting for 20 to 30 percent of professional club earnings. Roubert sent a letter addressed to the President of the Republic, the Prime Minister, and the ministries of Finance, Economy, and Sports, arguing that professional rugby contributes nearly €180 million in social and fiscal taxes, returning about €4 for every €1 of public support.

Roubert noted that several amendments to suppress Article 16 of the finance bill have already been submitted by cross-party parliamentarians, including representatives from Droite républicaine, Les Républicains, the Socialist Party, Renaissance, Horizons, LIOT, and the Rassemblement National. This legislative push is supported by the National Association of Professional Sports Leagues, various sports federations, and the CNOSF.

Uncertainty Remains Over Final Budget Adoption

While political stakeholders from across the political spectrum have taken up arguments presented by sports and cultural industries, the final outcome of the finance bill remains undecided. The LNR continues to rely on parliamentary networks and the Parliamentary XV to lobby lawmakers before the budget vote, leaving the future of French rugby’ dependent on whether the proposed tax increase is ultimately withdrawn.