The DFL clubs will vote again on December 11th on whether to bring an investor on board. The DFL wants to convince the critical clubs with a slimmed down version of the deal.
According to information from Sportschau, the Presidium and the Supervisory Board of the DFL decided in a joint meeting on Tuesday (November 14th, 2023) that the general meeting of the 36 clubs in the Bundesliga and the 2nd Bundesliga on December 11th would vote on whether the two managing directors a mandate is given to conclude a deal with an investor.
At the last attempt on May 24th, the necessary two-thirds majority was not found among the 36 clubs. At that time, 20 clubs voted in favor, eleven against and five abstained. Marc Lenz and Steffen Merkel, who have led the umbrella organization since July 1st, will once again need a two-thirds majority, i.e. 24 votes.
Marc Lenz (l.) and Steffen Merkel, the two managing directors of the DFL
Hope for a billion euros
The league’s plans, approved by the industry giants FC Bayern and Borussia Dortmund, also stipulate that a subsidiary will be founded. This is intended to market the rights, including audiovisual media rights, the DFL’s main source of income. According to the new plan, the potential investor should receive six to nine percent of the company’s proceeds annually. As in May, the term is 20 years. The sports show learned this from club circles. In return, the DFL expects a payment of between 800 million and one billion euros.
Failed attempt in May split the league
The attempt, which failed in May, involved a deal with a 12.5 percent profit share over 20 years. An investor should pay up to two billion euros for this.
The plans had divided the league: At that time, only a third of the money was supposed to go to projects that benefit the community. According to the model at the time, several hundred million euros would have gone directly to the clubs, although not in equal shares, but according to the valid distribution key. After that, Bayern will receive a multiple of what Holstein Kiel is entitled to, for example. Some clubs took issue with this, as did the investor’s right to veto certain decisions, which was revealed by Sportschau.
Most of it for digitalization the DFL, no longer for the day-to-day business of the clubs
The plans for the new deal stipulate that around 60 percent of the money raised will go to joint digitization projects, such as the development of a digital video platform. Around 30 percent is intended to offset the payments due to the investor after completion for at least five years. Otherwise the clubs would initially be missing this money. The remaining 10 percent is intended to fill a pot with which the DFL wants to promote foreign activities such as club friendly games in order to increase the previously relatively low foreign revenues.
The media rights for the four seasons from the 2025/26 season are expected to be awarded in the first half of 2024. At least a slight decline in media revenue is expected. The involvement of an investor is also seen as a signal from the DFL of its willingness to explore new avenues. Several media partners recently publicly expressed requests, for example for videos from the dressing room or the team bus.
However, there was already broad consensus among the clubs in May that there is a need for investment in digitalization and internationalization and thus in the further development of the business model advocated by the DFL. And so in recent weeks, the DFL has tried to address the criticisms of its previous opponents in discussions with the clubs – for example, that hardly any potential investor money is being used in the clubs’ day-to-day business.
First protests from fans: “We’re keeping an eye on you”
On the first weekend in November, there were the first protests in the fan curves of numerous German professional football stadiums about a new potential entry by an investor, which may be a private equity company (holding company). When the deal fell through in May, the company CVC, which is involved in the highest leagues in Spain and France, but is also active in other sports such as Formula 1 and rugby, was considered the favorite.
According to information from Sportschau, some clubs also have concerns about the new investor model, for example because of the timing of the deal in a phase of high inflation and rising interest rates. Some clubs should still prefer the option of taking out loans for necessary investments. Above all, Borussia Dortmund’s managing director Hans-Joachim Watzke, head of the DFL supervisory board, has always spoken out publicly against it in the past.