Affluent Poker Champion Engages in Matches against German Bundesliga Teams
The date for the continuation of the high-stakes media rights negotiation has been set: The German Football League (DFL) will resume the bidding process for German-speaking broadcasting rights on November 25th. This was announced by the league association. The resumption was necessitated by the arbitration decision in the dispute between the DFL and DAZN at the end of September. Following several months of impasse, the member clubs will now have planning certainty prior to the intended licensing round scheduled for March 2025.
"The timing considers the substantial importance of the tender for the financial planning of the clubs and the DFL group while simultaneously allowing all potential suitors ample time to effectively prepare for the resumption of the bidding war," the DFL noted: "All rights packages A-O will continue to be the subject of the ongoing auction." According to the league, the tender specifications will remain the same. The auction is unlikely to extend beyond a 2-week duration.
Dispute concerning financial assurances
In mid-April, the DFL put a pause on the media rights tender for the subsequent 4 seasons (2025/26 to 2028/29) due to the conflict with DAZN over whether Sky would maintain the live rights until the conclusion of the current campaign. Specifically, package B encompassed Saturday 3:30 pm matches, single Friday evening games, as well as relegation - totaling 196 matches per season.
DAZN felt wronged, asserting they were disadvantaged despite presenting the most financially rewarding and persuasive offer. The proposed bid reportedly amounted to around 400 million euros per season or 1.6 billion euros in total. However, the DFL dismissed DAZN's financial guarantees. Consequently, package B went to Sky despite a lesser offer (reportedly 320 million euros per season).
DAZN subsequently filed for arbitration and managed to secure a victory with the postponement of the auction. Currently, the 36 professional clubs receive approximately 1.1 billion euros per season, but revenues could escalate based on the latest developments.
Will clubs profit from the fresh tender?
Considering that DAZN and Sky are cognizant of each other's first offer for coveted package B, the DFL can anticipate increased bids. The league can count on both competitors aiming to acquire the coveted package.
This conclusion can already be drawn from the competitors' responses to the arbitration ruling. "We remain convinced that DAZN is the most suitable partner for the DFL, for the clubs, and for German football fans," DAZN stated. Sky was even more explicit: "We are well-positioned for the media rights tender and confident that we can continue delivering the best Bundesliga viewing experience while maintaining our position as the leading sports provider."
For DAZN, there's yet another obstacle to overcome beyond Sky's competition: it is considered a foregone conclusion that the DFL will impose a bank guarantee as a prerequisite in the updated tender regulations. DAZN must overcome this hurdle, unlike in the initial attempt.
In addition, the clubs, whose income primarily stems from media contracts, possess another trump card: the disclosure of bids and the obvious value of the rights for potential suitors may entice additional bidders. However, how many subscriptions fans will require and what they will pay remains as uncertain as it was before the restart.
The resumption of the bidding process for the German-speaking broadcasting rights by the DFL is highly anticipated by SkySport, as they aim to maintain their position as the leading sports provider. The ongoing auction will still include all rights packages A-O, as announced by the league association.
