Essen. For the streaming provider, “total withdrawal” from the Bundesliga is certainly an option in the dispute with the DFL.
The great uncertainty: Shortly before the decision in the arbitration proceedings between DAZN and the German Football League (DFL), the streaming provider has indicated far-reaching consequences in the event of a defeat. “We are not ruling anything out,” said DAZN Germany boss Alice Mascia to the business magazine Capital with a view to the arbitration ruling expected on Tuesday (September 24).
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The Germany boss was referring to a lawsuit in a civil court and an exit from the broadcasts. “In this case, a total withdrawal from the Bundesliga would also be an option,” said Mascia, referring to a legal defeat after exhausting all possible legal remedies. DAZN is “a global company, for us there is more than just the Bundesliga.”
Bundesliga withdrawal “not optimal”
However, Germany is an important market. Therefore, a withdrawal is “of course not the option we are aiming for.” In fact, the streaming service would like to increase its involvement in the Bundesliga, says Mascia.
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.
DAZN feels discriminated against because its offer was rejected, even though it was “the most financially attractive and convincing.” The offer was said to have been 400 million euros per season, but the DFL did not accept the financial guarantees given by DAZN. Therefore, the corresponding package is said to have already been given to Sky despite the lower offer. DAZN then called in an arbitration tribunal set up for disputes.
Doubts about financial strength
Despite this escalation, there is still a “normal working relationship” with the DFL, Mascia stressed. What is now needed is a “matter of fact” approach to the dispute: “This is not about personal matters, but a business issue.” Mascia dismissed doubts about DAZN’s financial strength. “Among the bidders, there is no one who is growing as strongly and profitably as we are,” said the manager. In the second half of 2024, the company will be in the black for the first time on a half-year basis, and then on an annual basis in 2025: “We are proving that profitability can be achieved with live sport – contrary to all negative prophecies.”
Media revenue is by far the largest source of income for the 36 professional clubs. The league bosses are eagerly awaiting the end of the arbitration process so that the auction can continue. It remains to be seen what the financial outcome will be. In other European markets, revenue has 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. (sid/fs)
