Germany’s Bundesliga is currently in talks with private equity firms about a multi-billion dollar investment, according to a report in the Financial Times. Executives from the Deutsche Fussball Liga, which runs the Bundesliga, have opened these talks in a bid to bridge the financial gap between the European leagues.
Reports indicate that DFL executives have been in talks with at least five companies. The DFL is the governing body of the Bundesliga in Germany. Advent, Blackstone, Bridgepoint, CVC and KKR are among the buyout firms currently in talks with the league. They are reportedly interested in getting a stake in the Bundesliga media rights as well as commercial rights.
One of these firms, CVC, previously negotiated a media rights deal with Spain’s LaLiga and France’s Ligue 1. The Bundesliga also attempted a similar deal at the time; however, all 36 clubs spoke out against the deal. There are 18 teams in each of the two main divisions of the DFL.
Official commentary on the Bundesliga in talks with private equity firms
The aforementioned buying firms declined to comment on the matter. However, the Bundesliga issued a statement.
“There are several considerations regarding the future of German professional football,” the explanation read. “Among others, these include the option of a partnership that would provide growth capital and expertise for long-term strategic development.”
The Bundesliga’s claims to make the deal come at a time when the league is falling behind its competitors. The Premier League, LaLiga, Serie A and the Champions League have increased their global interest. Meanwhile, the Bundesliga appears to be stagnant financially. In fact, the German league generates less than $265 million per season in international television rights. Compare this to nearly $2bn for the Premier League and $882m for LaLiga.
The Bundesliga faces a turning point in its history
“The Bundesliga is a league that looks inward,” said media analyst François Godard. “They have not been looking for international opportunities like the Premier League and La Liga have. His clubs have been less active in building a global fan base than Manchester United or Real Madrid.
Creating a broadcast platform for the league could also become an option for the Bundesliga. LaLiga recently launched a similar service in many Asian markets. The league’s growth could ultimately come down to how much money the Bundesliga is willing to spend.
Photo Credit: IMAGO/MIS
