The arbitration award in the billion-dollar auction dispute between the German Football League (DFL) and DAZN is awaited with great excitement.
The league bosses’ blood pressure is rising, the broadcaster heads are in direct contact with their lawyers – the end or the turning point in the billion-dollar dispute between the German Football League (DFL) and the streaming provider DAZN is keeping the Bundesliga on tenterhooks. It seems completely unclear whether the arbitration ruling expected on Tuesday will put an end to the months-long auction dispute or whether the clinch will be fought with even tougher tactics.
That’s exactly why DAZN has left all options open.”We don’t rule anything out“, said Germany boss Alice Mascia shortly before the decision of the German Institution of Arbitration (DIS) in the event of a ruling that DAZN does not like. The threat is that the broadcasts will be withdrawn and a lawsuit filed in a civil court.
DAZN feels discriminated against
“In this case, a total withdrawal from the Bundesliga would also be an option“, Mascia told the business magazine Capital regarding a legal defeat after exhausting all possible legal remedies. On the other hand, Germany is an important market. Therefore, a withdrawal “of course not the option we are aiming for“.
Tuesday will show what the options are for everyone involved. In mid-April, the DFL suspended the auction of German-language media rights for the four seasons from 2025/26 to 2028/29 due to the dispute with DAZN, which, like Sky, still holds the live rights until the end of the current season. Specifically, this concerns rights package B, which includes the Saturday games at 3:30 p.m. as well as the individual games on Friday evening and the relegation (a total of 196 games per season).
The streaming provider DAZN feels discriminated against because its offer was rejected, although it “the most financially attractive and convincing” The bid is said to have been 400 million euros per season – a total of 1.6 billion euros. However, the DFL did not accept the financial guarantees given by DAZN. Therefore, the corresponding package is said to have already gone to Sky despite a lower offer. DAZN then called in the arbitration court.
Merkel: “Sign of unbroken popularity”
The possible arbitration ruling has an enormous range. From a complete restart of the auction to a reassessment of the financial guarantees to a confirmation of the DFL’s approach, everything seems possible. Depending on the ruling, the parties involved (DAZN, DFL, Sky) may feel compelled to take further steps.
The DFL is nevertheless deliberately remaining calm.”Was it everyone’s aim and hope to go to arbitration now? No, certainly not“, said Managing Director Steffen Merkel recently: “But I would turn it around: Is it also a sign of the unbroken popularity that media partners and broadcasters are fighting hard to win the contract for the package, even going so far as to take it to arbitration? I would say that one could argue that.”
The clock is ticking
You can – but you don’t have to. After all, time is running out with regard to planning security for the 36 professional clubs. The club bosses are hoping that the dispute will end so that the auction can continue. After all, media revenue is by far the biggest source of income for the clubs.
It is unclear what the overall financial outcome of the auction will be. In other European markets, the proceeds have fallen. The DFL wants to avoid that. The clubs currently receive around 1.1 billion euros per season – which already corresponds to an annual loss of 100 million compared to the previous cycle.
