(Updated) During a general meeting today, clubs in the Bundesliga and 2.Bundesliga voted in favour of the heads of the DFL to speak to investors regarding a plan that will allow them into the league.
What does this mean?
According to the DFL press release, this voting allows the presidents to negotiate with investors to conclude a ‘legally binding strategic marketing partnership’.
The aim is to create a subsidiary company which will license worldwide media rights as well as commercial rights to an investor. The investor will then gain an 8% sharehold of this company over the next 20 years. Once the cooperation between the two parties is over, the DFL will regain control of the subsidiary company for a cut price.
There are currently several interested parties but neither will have any impact on dealings within the leagues such as with new kick-off times.
In simpler terms, Sportschau explains the key areas: About one billion euros is to come from the investor. In return around eight percent of the revenue from the proceeds of the marketing rights should go to the investor. The marketing rights are to be grouped into this aforementioned subsidiary.
The overall aim is to improve the digitisation and internationalisation of the league, this will even include a new streaming platform.
What will the money go towards?
Sportschau have also provided a list of what the money from the investors will be used for:
€164m: The DFL will aim to create their digital platform, which will provide a platform for video content for fans. The platform will also be able to provide live games if broadcasters offer little money or if they are not available at home or abroad. This is similar to the NBA league pass.
€183m: This money will be used to help support teams in international trips, similar to the Premier League summer series. Certain videos will be created for specific markets to help retain fans abroad in the long term.
€126m: Used to fight illegal streaming of the Bundesliga whilst also improving the transmission of the league on TV. This will include alternative camera angles (team bus etc), and more access for broadcasters to teams during the week for more content. There is also speculation about a league-wide documentary similar to Netflix’s Drive to Survive.
€65m: Improved advertising, this can result in a title sponsor for the Bundesliga, similar to ‘LALIGA EA SPORTS’ and formerly ‘Barclays Premier League’.
The remaining money will see €300m used to fill the hole left by giving up 8% of income over the next few years. While the final €100m will be used to help clubs travel to the US, and Asia and also help to promote the Bundesliga.
How did the clubs vote?
The voting was conducted secretly and it will be up to the clubs to release public statements to state their positioning. The overall result (via Sportschau) of the vote was:
- 24 teams voted in favour
- 10 teams voted against
- 2 abstained
The teams that have publically stated their support are: Bayern Munich, RB Leipzig, Hoffenheim, Bayer Leverkusen, 1. FC Heidenheim, Wolfsburg, Borussia Dortmund, Werder Bremen, Eintracht Frankfurt, Borussia Mönchengladbach, VfB Stuttgart, Bochum, Mainz 05, SC Paderborn, SpVgg Greuther Fürth and Schalke 04, Darmstadt 98, Elversberg, Hamburg, Karlsruher SC, Holstein Kiel, Hansa Rostock, Wehen Wiesbaden and Hannover 96.
The teams against: 1. FC Köln, SC Freiburg, St. Pauli, Fortuna Düsseldorf, Kaiserslautern, Union Berlin, Nürnberg, EIntracht Braunschweig, 1.FC Magdeburg and Hertha Berlin
Augsburg and Osnabrück abstained from the vote, in this situation it is similar to voting no.
Union Berlin and Hannover 96 were both sceptical in their own right. Union had asked for the vote to be postponed while there was division between the bosses at Hannover.
GGFN | Jack Meenan
