Fresh money for the Bundesliga?: DFL – Investor yes, but no sale of shares

The German Football League (DFL) has announced the framework for a strategic partnership with an investor. Shares should not be sold – instead, a partner should share in the proceeds for a limited period of time.

The DFL spoke in a message from “guard rails”. Accordingly, a sale of shares is excluded. Instead, a possible investor “a temporary minority interest in license revenues from the exploitation of Bundesliga rights” receive. So would “Sovereign rights and tasks of the DFL as well as the influence and participation rights of the clubs are fully protected at all times”, announced the DFL. The leagues in Spain, France and Italy had recently entered into similar deals in order to get fresh money.

Up to three billion euros hoped

According to the DFL, the “Future Scenarios Working Group” developed the proposal. had preceded “a very intensive and constructive exchange with some in-depth discussions”. The AG consists of Jan-Christian Dreesen (FC Bayern Munich), Rüdiger Fritsch (SV Darmstadt 98) and the DFL managing directors Axel Hellmann (Eintracht Frankfurt) and Oliver Leki (Sport-Club Freiburg).

According to “Bild”, the AG wants to recommend that the DFL Executive Committee and Supervisory Board sell 15 percent of a new DFL subsidiary for TV rights. Expected proceeds over a period of 25 to 30 years: 2.5 to 3 billion euros.

Decision at special meeting in April

According to information from the sports show, there was rejection among some clubs, especially against the sale of shares. The AG apparently agreed. A circular from the DFL management to the clubs, which is available to the sports show, says: “An external partner never has access to what defines German professional football – from 50+1 to the design of the game plan.”

The DFL management spoke of a need for investments to secure the future of the league and clubs. “A corporate action at DFL level” also enable investments “while respecting the 50+1 rule”. A strategic partner must accept a limited influence that only relates to commercial matters.

The letter does not promise a decision at the upcoming general meeting on March 2nd. “Instead, due to the special importance of the complex, we will convene a separate general meeting, which we plan to do in April.”

Dissatisfaction with proceeds from abroad

From the point of view of the DFL, the possible income is about maintaining international competitiveness. In the DFL and among many clubs, there is dissatisfaction with the revenues currently being generated, particularly in the case of foreign marketing. while the premier league far ahead, the Bundesliga also lags behind the Spanish and Italian leagues.

DFL supervisory board chairman Hans-Joachim Watzke said in the summer of 2022 that a deal with a strategic partner would be interesting if, among other things “the probability that foreign earnings will be significantly increased by a third party’s own manpower is significantly increased”.

Crucial question open

An important question is also open: How will the money be distributed? The current TV distribution key means that the top clubs receive the most money. Should such a key also apply to investor money, smaller clubs could be more opposed to it.