The managing directors of the German Football League are of course satisfied: The narrow two-thirds majority in favor of the investor deal at the general meeting is a “good sign that together – DFL as well as the clubs – we want to further develop the Bundesliga and 2nd Bundesliga.” said Marc Lenz, second DFL boss alongside Steffen Merkel, at a press conference after the decisive vote in Frankfurt am Main. With 24 votes in favour, ten against and two abstentions, the 36 clubs from the first and second Bundesliga voted to allow the DFL management to negotiate an investment deal with bidders. The voting result also shows that a significant number of clubs reject the deal or view it very critically.
The new concept is a greatly slimmed down variant of the old concept, only the core of the deal remains the same: The DFL wants to outsource all media rights to a subsidiary and sell around eight percent of the shares in this company to an investor for 800 million to one for 20 years Sell billion euros. According to the DFL, six bidders in the form of private equity companies have expressed interest.
In the event that a billion euros are actually raised, 600 million should flow directly to the DFL central administration to further develop the business model (digitization, streaming platform, etc.). 300 million will flow to the clubs to compensate for the initially resulting shortfall in media income. The remaining 100 million will be used to create a compensation system that rewards clubs that travel abroad for advertising purposes.
For the fan alliance “Our Curve,” the approval for the deal is a severe “setback”: “The DFL’s cheap words during the Corona break have finally vanished into thin air. Money is above everything,” it said in a statement was published before the vote on Monday. “The uniqueness of German football is being thrown overboard in a hopeless rat race with the Premier League.” “The consequences of this decision also exacerbate the unequal opportunities in the German leagues in favor of an increasingly artificial product of the international TikTok world.”
The biggest fear on the part of critics and fan organizations is the possible influence of the investor. What happens if the new backer wants different kick-off times and a further fragmentation of the match day in order to increase its profits? Or if the pressure on clubs increases to undertake unnecessary trips abroad? In the run-up to the vote, the DFL emphatically emphasized that the “sovereign rights” remained with the DFL and the clubs. However, the critics rightly point out that experience shows that investors always want to exert influence. After all, it’s about maximizing profits; an investor wants to make money. Sporting concerns or the interests of supporters hardly play a role.
It is also a thorn in the side of smaller clubs that the distribution key between the clubs, which is perceived as unfair, is maintained. The expected profits may increase revenues, but they also increase the gap between the big and small clubs. That was also the reason why the first deal was rejected in the spring. Because of the much higher sales price (two billion), it would have immediately put money into the clubs’ coffers, but according to the much-criticized distribution key. With the new deal, the DFL’s income is initially earmarked (see above).
Many people also have a problem with the fact that the term is 20 years. What happens if the investor resells the rights? The DFL has provided insurance here. Accordingly, the investor should only have the right to resell after eight years at the earliest. The DFL also has a veto right to prevent deals with critical partners such as Saudi Arabia or an investor group from China. A buyback of the rights by the DFL should be agreed after nine years or 15 years. Nevertheless, the possible resale represents a kind of gateway for investors who have not suffered so well.
Sources: DFL, DPA, “Süddeutsche Zeitung”, “Bild”
