Football: The TV billions are being redistributed in the Bundesliga

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In the Bundesliga, the TV billions are being redistributed

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DFL: More equal distribution thanks to Corona

The DFL is taking into account the effects of the corona pandemic in its new distribution key for TV money up to the 2024/25 season. In the coming season, more than half of the money generated will be distributed equally.

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.

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“Critical Mistakes”

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.”

“Most difficult season” for German football

DFL boss Christian Seifert swears German professional football to an enormously tricky season. “The organization and implementation of this season will be many times more complicated than the end of the last season,” says Seifert. All those involved need a “maximum amount of energy” to cope with the coming season.

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.

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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.

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New money rain? Investors are knocking on the Bundesliga

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New money rain? Investors are knocking on the Bundesliga

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At the meeting of the clubs on Monday, however, the future distribution of the TV money will also be discussed

The meeting of the clubs on Monday will also deal with the future distribution of the TV money

Source: Getty Images / Alexander Hassenstein

German professional football is looking for new sources of income in the crisis. Apparently the DFL is planning to get investors on board. There seems to be great interest. It’s about 200 to 300 million euros.

Dhe meeting is scheduled for Monday morning. And as in previous months, if there was something to be discussed, discussed or decided, the 36 invited participants will connect by video – this is how it is with conferences for the most part in Corona times.

The German Football League (DFL), under whose roof the 18 first division and 18 second division clubs operate, has invited the clubs to a meeting. In addition to the recently heavily controversial distribution of TV money, there is also another economically very important point on the agenda: Apparently the DFL is planning to sell subsidiaries to investors. It is said that DFL boss Christian Seifert wants to inform the club representatives. It is explicitly about the sale of shares in the DFL subsidiary Bundesliga International GmbH.

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Since there will be less money from the marketing of media rights from the coming season, the Bundesliga needs new sources of income, because from the coming season there will be less money to be distributed from the marketing of media rights. A few weeks ago, the DFL Presidium, which comprises nine members and meets with the 36 club representatives one day before the meeting, is said to have discussed investor offers for a subsidiary of DFL GmbH for the first time.

DFL, Christian Seifert

DFL-Chef Christian Seifert

Source: pa / dpa / Frank Rumpenhorst

In any case, the interest of financial investors in getting involved in German professional football seems to be great. As the “Financial Times” reports, more than 20 addresses from the private equity camp have asked the DFL. Private equity are equity investments that are acquired in non-listed companies. The newspaper names around 20 investment companies such as Advent International, Apax, Ardian, Apollo, Bain Capital and BC Partners.

Secret meeting in Frankfurt

In Italy, the Italian Serie A cleared the way for the sale of a ten percent stake in the company for its media rights and will receive 1.7 billion euros in return.

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According to the “Financial Times”, shares with a volume of 200 to 300 million euros are to be sold in the event of a possible investor deal, whereby the company would be valued at more than one billion euros. One of the goals of Bundesliga International GmbH is to install an online payment system to distribute Bundesliga games worldwide. Most recently there was talk of an app with which the DFL could directly market the moving images in some markets.

At the meeting of the clubs on Monday, however, the future distribution of the TV money will also be discussed. The DFL Presidium also wants to discuss this on Sunday – and then provide information. Most recently, an open dispute was sparked about it in the league, which culminated in a secret meeting of top officials from 14 Bundesliga clubs and the second division club Hamburger SV. The four Bundesliga clubs FC Augsburg, Arminia Bielefeld, 1. FSV Mainz 05 and VfB Stuttgart were not invited. The quartet had previously positioned itself on the question of the future distribution of the TV money and publicly advocated a new regulation.

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The advance caused trouble. Karl-Heinz Rummenigge, CEO of FC Bayern, spoke of a solidarity pact that “we did not break”. “They threw the gauntlet down to us,” he said to the address of the four first division clubs and their supporters from the second division.

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Christian Seifert: Bundesliga is looking for a new “billionaire dealer”

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.

Seifert is leading the DFL through the corona pandemic with calm and understanding

Source: dpa / Frank Rumpenhorst

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.”

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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.

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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.

BVB boss Hans-Joachim Watzke

Hans-Joachim Watzke praises Seifert for his work at a high level

Source: dpa / David Inderlied

“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.

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