Sports Streamer DAZN Stops Paying for Rights Fees

Streaming service DAZN Group has told sports leagues it will not pay rights fees for any suspended or cancelled games amid the coronavirus pandemic, according to Reuters citing a source familiar with the matter.

The streaming service is the first media company operating in the United States that has decided to withhold fees, which are paid to sports leagues for the right to air events, as broadcast networks have traditionally continued to pay the fees when games have not aired. The move was first reported earlier on Tuesday by Sports Business Journal.

DAZN (Da-Zone) will also not pay for future seasons until the company is given an update on when those seasons will begin, the source said.

DAZN did not want to continue paying the fees because it has no clarity on when sports seasons will resume, and is focused on defraying costs, the source added.

The streaming service, launched in 2016, is available in nine countries including the United States and Canada. It streams boxing and mixed martial arts (MMA) in the United States and holds streaming rights for the National Football League and Major League Baseball in Japan.