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Beyond Bordeaux’s Bankruptcy: A Lesson In Adapting to the Evolving Sports Media Landscape
By Jeffrey Schlerf
Word that the historic French franchise Girondins de Bordeaux filed for bankruptcy recently rocked European football. Bordeaux, which began in the early 1880s as a sports club, previously competed in the first tier Ligue 1, winning six titles. But two seasons ago, Bordeaux was relegated to the country's second-tier league, Ligue 2. Various factors led to the team's downfall. But one force in particular poses an even broader threat to the sustainability of the elite level of French soccer: media rights.
The club's attendance remained reasonably strong despite relegation. On the other hand, a key source of income — sponsorships — suffered. Even before the club's demotion, that revenue source for Bordeaux paled in comparison to that of Ligue 1's top club, Paris Saint-Germain (PSG), by a factor of 12. But the larger consequence of demotion is a significant reduction in media rights revenue.
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