DFL management promotes investor: “No alternative” – ​​entry should bring 2 billion

4 bidders still in the running

Axel Hellmann described the entry of an investor in the German Football League as “there was no alternative”, Oliver Leki spoke of the need to secure the future of German professional football. In 90 minutes plus stoppage time, the two DFL managing directors intensively campaigned for a fresh injection of capital from a strategic partner at the Frankfurt headquarters on Thursday and addressed the fears of critics and fans.

“We are obliged to ensure the long-term stabilization of the Bundesliga and to ensure its economic competitiveness. Professional football therefore needs growth capital,” Hellmann appealed to the 36 clubs before the vote on May 24 at an extraordinary general meeting. Before the fundamental decision is made, the concept that has been developed over the past few months will be discussed in detail in two rounds of talks with club representatives on May 12 and 15, and the offers of potential strategic partners will be presented. “We need a change in our models, so we have to invest and spend money,” Hellmann campaigned for broad approval.

According to the spokesman for the board of Eintracht Frankfurt, four of the original six applicants remained. “The potential partners are all from the Champions League category. That shows how attractive the Bundesliga is,” said Hellmann. The quartet are all private equity firms. This means that the capital provided cannot be traded on the stock exchange. The plan provides for the future investor to acquire 12.5 percent of the marketing of the national and international Bundesliga media rights for a period of 20 years. In the next step, these would be outsourced to a subsidiary called DFL MediaCo GmbH & Co. KGaA.

DFL: Investor entry should bring 2 billion – 300 million for clubs

The deal is intended to bring fresh capital of around 2 billion euros to the league, 85 percent of which is to flow into earmarked investments in future fields and to strengthen the stability of the DFL. “We have to diversify revenue streams, establish new strategic marketing options and expand our scope for action,” Hellmann said, outlining the goals. The DFL sees a lot of catching up to do, especially in international marketing, the competing leagues from England, Spain and Italy are far ahead. Hellmann said: “We need to build global connections with fans worldwide. We need to take action there.” The key point is the development of a separate platform through which the offers are to be played out.

Only 15 percent of the total amount – around 300 million euros – should be given to the 36 clubs for free use. On average, that would be just over €8m for each club. “So we don’t flood the market with money that goes to consultants and players,” said Leki. According to the CFO of SC Freiburg, the distribution should be based on the currently valid keys. There should be “no winners and losers”. A two-thirds majority is required to implement the plan. Should this come about, the process could be completed by mid-July at the latest, according to Hellmann. “It’s a far-reaching decision that needs a stable majority,” said Leki.

The DFL management duo also emphatically pointed out that a potential investor would not gain sovereign rights and thus no influence on the schedule design, for example. “I understand the fears of the fans,” emphasized Hellmann and assured: “This red line will not be crossed.”

To home page