In the Bundesliga, the TV billions are being redistributed
| Reading time: 2 minutes
Big changes are coming to the Bundesliga. The money from the TV contracts should be distributed more fairly in the short term. DFL boss Seifert only sees the financial storm coming: “Last season was a mild breeze.”
Dhe TV billions will in future be distributed more evenly among the 36 clubs in the Bundesliga and 2nd division. With the new regulation of the distribution key for the around five billion euros in marketing income, the German Football League wants to cushion the effects of the corona pandemic in the next two seasons, said league managing director Christian Seifert on Monday in Frankfurt am Main.
In the two years thereafter, the performance concept, the promotion of young talent and the interest in the respective clubs should be weighted more heavily.
The basis for the distribution from the marketing of national media rights in the 2021/22 to 2024/25 seasons is a new four-pillar model. The category “equal distribution” accounts for 53 percent of the income in the first two years, after that it is still 50 percent.
The performance of the past five seasons is weighted initially at 42 percent, then at 43 percent. According to the DFL, the remainder is made up of the pillars “young talent” and “interest”. The international proceeds will also be distributed according to a new key that aims to end the recent dispute among clubs.
“The spread is guaranteed to decrease nationally and internationally,” said Seifert, but added: “Reducing a spread between Bavaria and Bielefeld by giving Bayern five million less and Bielefeld five million more does not make the championship more exciting. “
“Clubs have done too little at the front of player salaries”
The Bundesliga would face further severe cuts, said Seifert. Including last season, the clubs will lose around two billion in sales by the 2021/22 season: “Last season was at best a mild breeze, but now the storm is coming.”
He warned the clubs to further reduce player salaries in the Corona crisis. “One or the other club will have to continue working on its cost base. I’ve now seen the balance sheet, “said Seifert:” Some clubs have done too little in terms of player salaries. “
In order to have a better perspective, the DFL is examining the entry of international financial investors. There should be talks from February. “If the clubs should decide to do so, it will not be because you need short-term money now, but because you want to be better positioned for the time after the Covid pandemic,” said Seifert.
The investor question is about the sale of shares in a DFL subsidiary for international marketing. The DFL had already announced that it would prepare information meetings with companies from the private equity sector interested in minority interests.
Four clubs booted out – “G15” divides the Bundesliga
| Reading time: 3 minutes
On Wednesday there will be an explosive meeting in Frankfurt. The Bundesliga clubs discuss the future. Four clubs were not even invited, but a second division team. What is behind it and what it is about.
Dhe “Frankfurter Kreis” with its secret meeting causes displeasure and guesswork in professional football. The “G15” summit meeting initiated by Bayern boss Karl-Heinz Rummenigge and the other top clubs Borussia Dortmund, RB Leipzig, Borussia Mönchengladbach and Bayer Leverkusen will take place on Wednesday (11.00 am) in the “Airport Club” at Frankfurt Airport. As the organizer, Eintracht Frankfurt ensures that it is carried out in accordance with corona. There are still no official announcements.
Above all about the overall situation and future of German professional football and not just about the future distribution of TV money. The financial worries of professional clubs are growing in the pandemic, a return of fans to the stadiums is not in sight.
The German Football League is about to say goodbye to the esteemed managing director Christian Seifert – albeit not until 2022. The DFL Supervisory Board will decide on his successor. Even under the new President Fritz Keller, the German Football Association cannot get out of the negative headlines and continues to fight with contaminated sites amid the corona-related problems. There is also a dispute between Keller and General Secretary Friedrich Curtius.
Who is at this meeting and who is not?
The top officials of the first division around champions FC Bayern and initiator Rummenigge as well as a single second division – Hamburger SV are represented. A quartet is missing, however: FSV Mainz 05 is one of the clubs that have been booted alongside FC Augsburg, Arminia Bielefeld and VfB Stuttgart.
Bankrupt after professional career
This can definitely be seen as a lesson: The quartet had infected with a position paper on a redistribution of the TV money from the 2021/22 season. This is about 4.4 billion euros from national media revenues, which will be divided among the 36 professional clubs until the end of the 2024/25 season. DFB and DFL with its managing director Seifert and supervisory board chairman Peter Peters are also not represented.
What do the excluded say?
For Jan Lehmann, CFO from Mainz, this is “strange behavior if parts of the league are excluded”. Even Frank Baumann as managing director of the participant Werder Bremen said in the “Kicker”: “In view of the current challenges and in the spirit of solidarity, we would have liked all Bundesliga clubs to be invited.”
How do the participants justify themselves?
Aside from the TV money, Leverkusen’s club boss Fernando Carro sees a whole range of “very important issues for those responsible within the Bundesliga”. He emphasized: “Dialogue is important, as is the greatest possible unity. We want to contribute to this as Bayer 04 and have helped to drive this trend-setting meeting. “
What does the German Football League say?
DFL boss Seifert has not yet issued a statement. Jürgen Machmeier, President of SV Sandhausen and member of the DFL Supervisory Board, explains: “It is legitimate for clubs to meet and exchange views. A supervisory board or all associations do not necessarily have to be there. What is and remains important is solidarity within the entire DFL. “
How does further criticism spark?
So far, all decisions in the pandemic have been made by the Presidium and, above all, the General Assembly of the DFL. The current meeting takes place outside of all committees and structures. In addition, there is no transparency – especially about content. And some see it as an ominous parallel event to the “Future of Professional Football” task force, in whose working groups people from different areas of society are represented.
“We heard about this meeting from the press,” said task force member Helen Breit from the fan interest group “Our curve”: “Here we see the initiators as having an obligation to provide information – overlaps with the task force must be made transparent.”
ADuring the weekend, ARD ran a very profound documentary. Title: “On, on and on – Corona. The Bundesliga. The restart ”. In it, protagonists of German football tell how they experienced the past few months after the virus stopped social life in Germany in March and led to the first interruption of the Bundesliga since it was founded in 1963.
Above all, Christian Seifert, head of the German Football League (DFL), had his say and described in detail what happened in the spring when it came to the survival of German football.
The 48-minute film once again showed how much Seifert in particular got involved and acted. But a successor must now be found for the head of the DFL, who has proven himself in the crisis.
The managing director of the umbrella organization of the 36 professional clubs will not renew his contract, which ends on June 30, 2022. “The only clear decision for me is that I will open a new professional chapter,” said Seifert in an interview with BILD.
Seifert came from Karstadt
“These are challenging times that require clarity and reliability. That applies to the DFL as a whole and also to my professional ambitions, ”Seifert had previously communicated. Peter Peters, head of the supervisory board, in turn, let it be known that the supervisory board would approach the new appointment professionally without time pressure and set up a comprehensive process for this purpose.
He confirmed that the change at the top would mean a turning point. “Christian Seifert has done an outstanding job in more than 15 years”, says Peters: “and thus made a significant contribution to the success of the Bundesliga and the 2nd Bundesliga.”
In 2005 Seifert – married and father of two children – came to the DFL. He was previously CEO of KarstadtQuelle New Media AG and initially managing director rights, licenses, marketing. He soon succeeded Wilfried Straub as Chairman of the Management Board. The fact that Seifert doesn’t have a great footballing past didn’t matter then – and certainly not today.
The billionaire dealer
He tackled immediately and gave German football an immense upswing in the years that followed. The marketing of TV rights rose during his tenure from 400 million euros per season to more than one billion.
“The billionaire dealer” was the headline of “Kicker” in 2012 after a TV contract negotiated at the time and calculated that if Seifert got ten percent of a transfer like a player’s agent, he would have to receive 250 million euros. Seifert has no plans for his professional future yet. “A job at a club would not be the new professional chapter that I am aiming for,” he emphasized to the “image”. And: “I definitely rule out a change to the DFB in whatever role.”
How competent, eloquent, well networked and strong in leadership Seifert is was shown in the Corona crisis. When football came to a standstill and the players, coaches and supervisors were forced to take a break, Seifert became the face of German football. From then on, Seifert presented at regular press conferences what the 36 professional clubs had previously advised in video conferences under his leadership, strategically clever and also with a corresponding humility towards politics and the authorities.
Seifert led DFL through the crisis
Seifert was present on German television almost every week when there was something to report about the situation in professional football. Then he sat in front of the podium, calm and collected. He allowed every question there was. “Thank you for the question,” he usually replied first and then answered. From the beginning Seifert made no secret of the seriousness of the situation. He spoke of the threat of bankruptcy if the game cannot be continued.
“We make a product. But this product, which makes a handful of young soccer players rich, also guarantees work and a livelihood for at least 56,000 other people. ”Seifert was always clear in what he communicated. But as controlled as he often seemed, everything that has happened in the past few months has of course not passed him by. But on the contrary.
In a very personal interview, the DFL boss recently told the “Stern” how the difficult phase changed him himself. “I had a few nights with little sleep. The number of questions that came up was so great that I got up in the middle of the night and had to write everything down. ”When the Bundesliga dared to restart the world-wide acclaimed restart in May, he decided not to visit the stadium and preferred to mow at home the lawn. The pandemic was still not a trigger: “The situation of the last few months due to Corona has nothing to do with the decision.”
Watzke praises Seifert
Seifert, for whom it was “an honor and joy at the same time”, as he said on Monday, “will be able to actively shape the development of one of the largest sports leagues in the world, an important social institution and the establishment of one of the most innovative media companies in Germany” will be almost two years. now still be in office. Then he will leave big footsteps. Not only Hans-Joachim Watzke, the managing director of Borussia Dortmund, is already aware of this.
“German professional football is now asked to find a suitable successor. To replace a man like Christian Seifert, who has worked for football at such a high level for so long, 1: 1, is a difficult undertaking, “said Watzke. When asked about a successor, the promised one: “That is the task of the supervisory board. If you get my opinion or assessment, I am of course available. “
But which candidates are there? A dual leadership would be conceivable, in which the recognized DFL communications director Christian Pfennig plays a larger role. The name Michael Ilgner, previously Head of Sporthilfe, now Head of Human Resources at Deutsche Bank, is circulating.
One thing is clear: Karl-Heinz Rummenigge (65), who will leave Bayern on December 31, 2021, is not available. A former club boss would always be accused of partiality anyway.
VfL Osnabrück has submitted an application to the German Football League to cancel the home game against SV Darmstadt 98 planned for Sunday. The second division announced this on Monday.
Update 12:36 p.m .: After the application, it is still unclear when a decision by the German Football League can be expected. The application will be examined, there is not yet a date for a decision, the DFL announced on Tuesday upon request.
Update October 14th, 5:10 pm: Third division MSV Duisburg has also submitted an application to the DFB to postpone the home game against Halleschen FC this Sunday. “The MSV has sent the DFB the necessary documents, according to which the required number of more than 13 players including a goalkeeper is not available on the match day,” said a message from the third division team on Wednesday. According to MSV, the squad is “currently decimated due to players who tested positive for Corona, other players in quarantine due to contact and injuries”. Whether the following games can be played in the English week at SpVgg Unterhaching (October 21) and against KFC Uerdingen (October 24) is also still open.
After the positive corona tests by two licensed players, a 14-day quarantine was officially ordered for a large part of the VfL team. According to the game rules, a game can be postponed as soon as at least 15 players are not able to play.
The two players had tested positive in regular testing over the past week. In addition to the professionals concerned, the responsible health service then ordered a majority of the team to be quarantined at home until October 21. There are no other positive results, it said from the club. Nobody shows symptoms of illness.
1st & 2nd Bundesliga: All 36 stadiums according to the number of standing places
Of course, he will watch the match between Bayern Munich and Schalke 04 this Friday evening, which opens the 58th Bundesliga season. Christian Seifert, 51, himself a fan of Borussia Mönchengladbach, has been head of the German Football League (DFL), the association of the 36 professional clubs in the first and second Bundesliga, for 15 years. The new season will be “the most demanding and difficult season in the history of professional football in Germany”. The past six months since the Corona outbreak was completely new territory. “The situation was complex, I reached my limits,” said Seifert at the Club Wirtschaftspresse München. From mid-March onwards, the Bundesliga was idle for many weeks, then it started again with a strict hygiene concept – and became a model for many other leagues and sports around the world.
But Seifert is also benefiting from the situation. From an economic point of view, the corona crisis was a “healing shock,” he said: “The realization that growth does not come automatically has now reached many clubs.” The money no longer “just comes out of the socket”. In the past few decades, the turnover of the Bundesliga has increased from year to year. In the 2018/19 season, the 18 clubs in the first Bundesliga combined sales of around four billion euros, while the second division generated sales of 780 million euros. Due to Corona, a decline is expected both in the past season and especially in the new season.
Seifert was already preparing the clubs for falling income from television marketing. For the 2020/21 season, which is now starting, 100 to 150 million euros less is to be expected, mainly because it looks “very dark” in international marketing. The advertising income for the clubs could also fall. Television rights and sponsorship money currently make up 60 percent of income. 13 percent is accounted for by ticket income, nine match days of last season were already without spectators, now some are allowed again, but declines are to be expected here too. In addition, the transfer revenues are lower.
Seifert assumes that players’ salaries will now drop significantly, he reckons with around 20 percent. The first division clubs recently spent around 1.5 billion euros on salaries. “The fact that many players are currently ending their careers at an age at which they could normally have played another one or two years is also due to the fact that there is no demand,” said Seifert. And: “At the moment a lot of players in the Bundesliga are happy that they have an employer.” The crisis has also shown many clubs that they need to professionalize their financial and liquidity planning. However, bankruptcies are not to be expected.
The DFL boss spoke out against a redistribution of national TV revenues, discussions in the DFL about this are starting now. The money from the Champions League would distort competition in the leagues and across Europe. No national distribution key could ever compensate for this. FC Bayern have become champions eight times in a row. You have to strengthen the pursuers economically if the championship is to be exciting again. Seifert is not worried about the attractiveness of the league: “In the Bundesliga, every competition is intact, except for the championship.”