Investor in the DFL – What’s the point?

The DFL clubs narrowly voted for an investor to come in and gave up their say. Fundamentally important questions will only be clarified in the coming months. Above all: What’s the point?

The goal was broad approval, but now it was just enough. The German Football League will get its investor. This means that, above all, the financially well-equipped Bundesliga clubs such as Bayern Munich, Borussia Dortmund and corporations supported by corporations or patrons will get their way.

You let them “Further development of the business model”at which a “strategic marketing partner” is supposed to be a big help, co-financed by the financially far less well-equipped clubs.

No one had even put forward the suggestion that everyone contribute according to their abilities to tackle digitalization with typical German delay and to become more internationally attractive. Eh, the thought is too romantic.

Better atmosphere in a “divisive bunch”

“We are a divided bunch”said a club representative at the vote in Frankfurt, and that is unlikely to have changed much after the vote, even if the atmosphere was nowhere near as heated as during the failed attempt in May. The statutes were passed with the exact two-thirds majority, but given the fact that all were in favor of investing in the future, a third reject or abstain is a lot.

What does the investor want other than returns?

The investor in the form of a private equity company will still come – without the clubs being asked again when the contract is signed. It is almost impossible that the negotiations that have long since begun will fail.

But what exactly will come is unclear. Who gives the money? Who did he get the money from? What are the benefits of using the money? What exactly does the investor want for the money other than a high return? Everyone who is familiar with the investment company industry says that this is not enough for him.

A lot of things have to be filled with life in the coming weeks and months so that a clear picture emerges. The DFL is convinced that it will soon have one, thanks in part to the investor “significantly upgraded media product” can present.

Where is that? Potential for appreciation?

When asked what would contribute to this, management also remained vague. Pictures from the cabin and short interviews after the bus arrives will certainly not be enough in the long term to attract more fans and therefore customers.

Bundesliga teams without tradition and second division teams of only local importance in Germany on a PR tour in the USA and Asia? What is that supposed to help? The exclusive content that the clubs are supposed to contribute to the DFL will also hardly make much money in the long term. However, it will lead to reporting shifting even more to the company’s own channels. Closed society, the fluffier the better.

None of this will be enough as a lever to significantly increase media revenues in the future for the benefit of the clubs and the benefit of investors. There would be a need for more interesting competition and more attractive, i.e. fan-intensive, clubs in the Bundesliga. This process would not be completed through more money, but through a different distribution. But the idea is far too romantic.