At their meeting on Friday, the Bundesliga club bosses will discuss the entry of an investor who should bring up to three billion euros to professional football. It’s about a big bet on the future, which should make life in the present more bearable.
The Bundesliga bosses can just about afford the conference room for their meeting in the Kempinski with their current income. But in the future, there could be a little more for professional football. At the meeting of the German Football League (DFL) on Friday in the posh hotel just outside Frankfurt, up to three billion euros are at stake, which the entry of an investor could flush into the coffers of the 36 clubs in one fell swoop. The dispute over the sense or nonsense of the project splits the league – again.
At the center of the bold financial plan is an investor, now known as a private equity company. For a limited period (between 20 and 25 years), he is to acquire 15 percent of the shares in a DFL subsidiary that has yet to be founded and to which the media rights will be outsourced. There are said to be six investors currently interested in the business model.
Of course, the whole thing has a catch: for the hoped-for three billion euros, the clubs would have to forego 15 percent of their media revenues in favor of the investor for the duration of the contract. Even with moderate growth in revenue (currently just under 1.3 billion per season from home and abroad), that would be significantly more than 3 billion over two decades – a loss-making business. Nevertheless, the DFL executive committee around the interim bosses Axel Hellmann and Oliver Leki and the supervisory board with its boss Hans-Joachim Watzke decided to pursue the concept further.
The supporters calculate that the three billion should be seen as start-up financing for digitization, which would quickly increase media revenues by significantly more than 15 percent. Should this actually succeed, for example through our own platforms for international marketing, it would be a win-win situation for clubs and investors.
In addition, the supporters of the model point out that other leagues (Spain and France) have already taken this step or want to take it (Italy). Without an investor, the Bundesliga would fall (even further) behind internationally.
Critics, on the other hand, argue that the clubs could also borrow the necessary money from banks – and thus not have to forego future income. There is also fear of a possible influence by the investor, who could push for a further fragmentation of the game day in order to achieve higher revenues. In addition, there is a risk that clubs will plug financial gaps with quick money or just buy a striker in the relegation battle instead of investing it with foresight. Quite apart from the usual distribution battles, which are already in full swing.
Despite the critical voices, the DFL has developed a roadmap: First of all, the opinions of the clubs are to be pooled in the ongoing rounds of talks. After that, the DFL would like to obtain non-binding offers by the end of March. A meeting of the clubs in the second half of April could give the green light for final negotiations. The decision would be made in the summer.
However, a two-thirds majority (24 of the 36 clubs) would be required for the vote. It could already be seen on Friday whether this will come about. Then it’s “only” about the choice of the successor for the ex-Herthan Fredi Bobic on the supervisory board – but the investor model is basically already up for voting. Finally, the club representatives have to decide between the critic Christian Keller (1. FC Köln) and the supporter Klaus Filbry (Werder Bremen). A win for Favorit Filbry is not enough. It depends on the majority (two thirds – or even less) to interpret the mood.
