The DFL is starting a new attempt to attract an investor. It is intended to make the Bundesliga more international, digital and innovative. Those responsible expect a slimmed-down version to have better chances than the failed process in May.
The 36 clubs of the German Football League (DFL) gave the impression of a strongly divided community when the investor deal was stopped four months ago. At a memorable general meeting there was not a sufficient majority for cooperation with an external donor. On Wednesday (September 13th, 2023), many of the supporters and critics of the investor deal will come together in Berlin to celebrate the 60th birthday of the Bundesliga, which started its first season in 1963, at a gala. It’s an opportunity to get back into the conversation after the big bang in May.
The DFL is currently making its next attempt to involve an investor in the league’s business. The new DFL management team made up of Marc Lenz and Steffen Merkel is holding talks with the 36 clubs to explain the strategy under their leadership. This is also about a new attempt at the investor question.
Less money, but smaller investor participation
According to information from the sports show, more attention should be paid to the terminology and the word with “I” should be avoided. As in the previous attempt, there is talk of a “strategic partner” and not an “investor”. The term “investor” caused rejection, especially in organized fan scenes, which is not necessarily different with another term. In any case, the investor – or partner – should bring in the money with which the Bundesliga wants to shape the path to the digital media future.
Fans protested against the deal in May.
“We should probably put together a smaller package and focus on the topics of internationalization and digitalization.”said DFL supervisory board chairman Hans-Joachim Watzke of Borussia Dortmund in the FAZ at the end of August. According to information from Sportschau, this is now the case. A volume of just over 700 million euros is to be targeted. According to “Sport Bild”, the investor will receive around 7 percent of the proceeds from the audiovisual media rights. When the deal fell through in May under the old DFL leadership, these key figures were two billion euros and 12.5 percent.
Then, as now, it is not about selling shares, but rather about investing. Which would revert to the DFL after an agreed period of time.
Criticism of transparency, distribution of money and possible influence
In the run-up to the vote in May, criticism came from some clubs about a lack of transparency in the process and the investor’s influence with a right of veto, which the Sportschau reported on. Some clubs also complained about the planned distribution of money, which, similar to the TV key, would have favored the big clubs. The fear was that the scissors would open further.
The DFL can now address these concerns by investing most of the money in centrally organized digitalization of the league. However, even with a tax of only 7 percent of the income, part of the proceeds from an investor transaction will have to be used to compensate for the missing income, which would henceforth go to the investor – probably according to the TV key.
In addition to making the whole process run better, speed is also important. In 2024, the tender for the audiovisual rights will take place from the 2025/26 season. An investor should have the task of making more money. Therefore, logically, he should at least be able to help shape the tender in some way.
The DFL’s main source of income is media rights.
In May there was a consensus: the Bundesliga has to be yours business model change
In the background, there is confidence that a smaller package with a focus on digitalization will meet with more approval than the proposal from May. There was also a broad consensus among critics that the Bundesliga needs to change its business model. In order to reach younger target groups abroad, a separate digital platform is to be created and provided with content with the cooperation of the clubs.
In the fight for attention, the Bundesliga doesn’t just have competition from the Champions League and the Premier Leaguebut also through other sports and leisure activities outside of professional sports.
The future? Videos from the cabin, team bus and training camp
The way football is shown on television and on platforms could therefore change in the coming years. Spain’s league, which has already completed a similar investor deal, now gives the audience a look into the dressing rooms of many teams. The clubs receive up to 13 million euros for this; Real Madrid, for example, gave up this money and the cameras.
In general, the topic is not without conflict. The Athletic Bilbao goalkeeper, Unai Simonobjected. “I’ve always seen the locker room as something personal and private for us. When you go to a game you need rituals, concentration and people you feel comfortable with.”he said. “I don’t like it, I don’t feel comfortable. It feels like it’s our sacred moment and I feel like someone is intruding on it.” Spain’s league boss Javier Tebas publicly praises the club’s actions on Twitter/X. In the future, football coverage could include clips from the team bus and training ground.
Sky and DAZN are demanding more exclusive access
“If football wants to develop and if it wants to score points, especially with young target groups, then it has to open up more”said Sky-Sports director Charly Classen of the German Press Agency. “We have to think more broadly than just demanding pictures from the dressing room – it’s generally about personalizing sport and about supporting the Germans’ favorite sport, not just on match days, but every day.” Better access, especially to clubs and players, would be helpful.
DAZN managing director Alice Mascia agreed with this view. You have to “Dare more with regard to innovative ideas and formats”. Sky and DAZN hold the live rights to the Bundesliga and the 2nd Bundesliga.
ECA: National leagues need to think about a different mode
However, neither a clip from the team bus nor one from the locker room can solve the main problem. The title fight in the Bundesliga has been largely boring for ten years. However, serial champions like Bayern Munich have become a widespread phenomenon in Europe, which is primarily a consequence of the top clubs’ high European Cup revenues.
The European club association ECA, which decided on a new distribution of money from the European Cup at its general meeting, does not see itself as responsible. ECA Managing Director Charlie Marshall said in an interview with Sportschau that a product can always sell well if it is strong enough. He recommended changes to Europe’s leagues.
ECA Managing Director Charlie Marshall
He pointed to France, which abolished the League Cup and reduced the number of teams in Ligue 1. “A format with playoffs or a mode like in Belgium could also be a way. We need to see more of that.” But changes are difficult because national football in particular is very traditional and conservative. “But if you don’t try something innovative, you can’t blame anyone else.”