At the beginning of 2023, it was reported by the German media that the Deutsche Fussball Liga,
who operate the Bundesliga divisions, are planning to sell stakes in the
competitions’ future domestic and international broadcasting rights.
According to estimates, this could potentially raise billions of Euros,
which could then be invested by the leagues and the clubs within them.
The promise of a future cash injection might have enthused
supporters across Germany. But they’re actually furious.
Why?
First, how would it work?
As has been done in other countries and by some clubs – notably Barcelona – the DFL would
create a company to manage its broadcasting rights and then sell stakes in that company
to outside investors. The company would be responsible for the selling of those rights,
both in Germany and abroad, with the investors sharing in the proceeds over a set time periods.
The benefit would be a sizeable cash injection, which could be shared among clubs and used to fund
infrastructural improvements, but it would also aid further technological development
of the Bundesliga product, with the aid of investors who specialise in different fields.
This second point is key to the DFL. The Bundesliga is a significant financial
disadvantage to the Premier League, and its future depends partly on its ability to
penetrate new markets. Perhaps by constructing a straight-to-consumer streaming platform,
like Spanish football’s LaLigaTv for instance, or by staging training camps and tours in more new
countries. Virtual hoardings which display different advertisers to different markets
are another idea and characterise the kind of evolution that the DFL would likely have in mind.
Investment by private equity firms would help fund that kind of evolution.
And these are advantages that the Bundesliga needs to find.
Its current domestic broadcasting contract is actually the second
richest among Europe’s top leagues, behind only the English Premier League.
However, comparing the respective leagues value in the foreign broadcasting rights
market paints a very different picture, with the Bundesliga
commanding less than a tenth of what the Premier League earns on an annual basis,
and also lagging well behind Spain’s LaLiga and Italy’s Serie A in annual value.
It’s a particularly difficult challenge for German clubs, who – unlike those from Europe’s other top
divisions – are subject to the 50+1 rule. It’s not possible for an individual or outside investor
to buy a controlling stake in a German club, and that denies them the kind of wealth that benefits
Manchester City, Paris Saint-Germain, or Chelsea, and which can – through exorbitant signings,
quick success and global media attention – raise the profile and broadcasting value of a league.
A different strategy is required for the modern football world and, according to the Financial
Times, the current idea has been under discussion for several years. The paper also reported back in
February 2023 that the DFL (has already) distributed a 110-page English-language
prospectus to potential investors, including CVC, EQT, KKR, Advent, Blackstone and Bridgepoint.
CVC will be a familiar name to many, having purchased a share of media rights in French
and Spanish football. Sixth Street, the US-based investor that bought a share of
Barcelona’s future broadcasting rights are, according to the same Financial Times report,
also interested in acquiring a similar package in the Bundesliga.
Despite the potential upsides, however, fans are fearful – and in some cases angry.
DW’s Matt Ford reported that Borussia Dortmund supporters displayed a series
of banners in opposition to the investment plan from Signal Iduna Park’s Yellow Wall,
during a game with Union Berlin in early April, and that the travelling
Union supporters displayed similar messages. Ford also reported opposition in Bochum and
Nuremberg amongst others, and similar banners have been spotted around the country. T
The principle fear is that investment on such a scale would come at a price
and the game as German fans know it would need to make concessions. According to a
statement distributed by Borussia Dortmund’s official fan department, but published by DW:
"Opening up to investors, particularly to private equity firms who are after
maximum profit, risks them using their influence to maximize their returns,
potentially against the interests of fans and stadium-goers."
Some more alarmist fears speculate that ticket prices and in-stadium atmosphere would change,
and that kick-off times might be adapted to suit foreign markets. The DFL say no,
that outside investment would have no influence on those decisions.
How such investment would be divided is another polarising issue. Unlike in England,
broadcasting revenue isn’t evenly split among teams in Germany and, naturally, the fear is
that the wealthiest clubs would benefit the most and further disadvantage the poorer sides,
in a country where – of course – the same team has won the Bundesliga ten years in a row.
Whether these fears are justified or not,
the conversation is also happening at a time when disharmony is detectable at
different clubs and when the atmosphere around German football seems thick with suspicion.
In Bremen in early April, fans protested ticket prices and stadium renovation plans
during a game with Hoffenheim. In Hamburg, a week later, before a match against Hannover,
fans protested what they believe were exorbitant ticket prices with banners that read “football
must be affordable” and “welcome to the most expensive second division circus in the world”.
German football has long been held up as a supporters’ paradise and yet the context into
which details of the investment plan have emerged is, in places, is coloured by the
distrustful of what fans see happening in other leagues. During their Champions League tie with
Manchester City at the Etihad Stadium, travelling Bayern Munich fans unfurled
a banner reading ''Glazers. Sheikh Mansour. All Autocrats out! Football Belongs To The People.''
Whether the DFL’s initiative proceeds will depend on a vote taken by representatives
of the 36 member clubs – and it will need a two-thirds majority to pass – but
regardless of outcome, German football remains in an awkward position between
protecting what makes it special and ensuring its club can still compete.