Telecom Italia is reportedly looking to reduce the cost of the €1 billion deal it agreed with sports streamer DAZN earlier this year.
The deal included distribution and technological support for DAZN’s coverage of Italy’s Serie A football league for the next three years.
However, the deal has failed to reach the company’s revenue expectations and, according to Italian newspaper Il Sole 24 Ore, Telecom Italia is now evaluating options to cut the fees it pays DAZN under the deal, and is expected to discuss the deal during a board meeting next week.
The deal was originally negotiated by former TIM chief executive Luigi Gubitosi, who was ousted from the company last week. Since agreeing the deal, the company has issued two profit warnings.
In the summer the Italian antitrust regulator launched an inquiry into the deal stating it could “lead to significant distortions of competition”, but ultimately ruled there is no reason for it to intervene after proposals submitted by TIM and DAZN served to ease its concerns.
