French rugby faces financial risk over proposed VAT increase

A proposed change in the 2027 finance bill could significantly impact French professional rugby. The French government is considering eliminating the reduced 10% VAT rate for paid television services, raising it to the standard 20% rate applied to streaming platforms like Netflix.

Canal+, the long-standing broadcaster and major economic partner of French rugby, has warned that this tax hike would affect subscription prices, staffing, and financial contributions to the sports and cinema ecosystems. The Ligue Nationale de Rugby (LNR) expressed deep concern, noting that television rights account for approximately two-thirds of its total revenue.

According to LNR President Yann Roubert, the revenue generated from these rights is vital to the economic model of the Top 14 and Pro D2 leagues, as the funds distributed to professional clubs represent 20% to 30% of their total income.