The day of the stock market
Bundesliga before selling billions of media rights
09/12/2022, 07:37
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The German Football League (DFL) is apparently serious about its plans to sell billions worth of media rights. Talks will begin Monday with eight financial investors who have shown interest in acquiring up to 20% of the national and international broadcasting rights of the first and second Bundesliga, according to two people familiar with the project. The newspapers “Handelsblatt” and “Bild” had already reported on it over the weekend. The rights marketing subsidiary yet to be founded could be valued at between 15 and 18 billion euros. The DFL and the 36 professional clubs could thus receive more than three billion euros.
“In the course of various considerations on the future of German professional football, the option of a strategic partnership that brings growth capital and know-how to the fields of the future is being considered,” says a spokesman for the DFL. “As announced, a formal process for this is currently underway.” In mid-August, the professional clubs gave the green light to the DFL, which organizes the Bundesliga, to look for offers. The goal is to develop a model for clubs in the coming months, the spokesperson said. According to financial circles, the sales process is organized by the investment banks Nomura and Deutsche Bank.
According to insiders, the trial is likely to drag on into next year, with clubs having the final say at a DFL general meeting. With the plan to engage foreign rights investors, the DFL has received a rejection from the clubs. This would have led to around 500 million euros. In recent months, however, there have been increasing demands from club executives to open up new sources of money to keep the Bundesliga competitive with the Spanish and England leagues.
When it sold the TV rights in Germany, the DFL had to make cuts for the first time last year. Abroad, the Bundesliga is far less in demand than the Spanish League and the English Premier League. With the help of financial investors, the Bundesliga wants to increase revenue. However, the proceeds should not flow into the salaries of the players and the commissions of the advisors, but into the infrastructure of the clubs.
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