DAZN publicly announces potential withdrawal in its entirety from the Bundesliga.
Despite the ongoing feud with the German Football League (DFL), the digital sports channel DAZN anticipates eliminating losses and turning a profit by the end of 2024, CEO Alice Mascia revealed to "Capital" magazine. By the second half of next year, "we'll achieve our first profitable half-year," Mascia stated. "In 2025, we expect to be profitable year-round."
Mascia celebrated this as a significant milestone for the sports industry in Germany. "We're proving there's money to be made from live sports, despite all the naysayers," she said. Since its German debut in 2016, the international media company has shown live matches from the Bundesliga and Champions League, among others. During the interview, Mascia stood firm on the threats she'd made in the dispute with the DFL, currently being negotiated at the German Institution for Arbitration (DIS). In April, DAZN had threatened additional legal action and a potential exit from the Bundesliga.
"We're leaving no stones unturned," Mascia stated. This dispute revolves around European competition law, which can be handled in civil courts. The possibility of a complete withdrawal from the Bundesliga remains open. "We're a global entity, so the Bundesliga isn't our only focus," she added.
Tensions between DAZN and DFL have escalated over the April auction and a bank guarantee. The dispute arose when DFL awarded TV rights package B, featuring 196 live games for 2025/26 to 2028/29 seasons, to pay-TV provider Sky. DAZN accused DFL of rejecting their superior offer due to a rushed bank guarantee request that couldn't be met within 24 hours.
Doubts about DAZN's financial stability and investor Len Blavatnik emerged. "Among the bidders, no one is growing as fast and profitably as we are - which is beneficial for leagues and associations we collaborate with," Mascia explained. "Regarding Len Blavatnik: Since DAZN's launch, he's invested over $6 billion in rights, technology, and personnel. Blavatnik's investments have significantly boosted the clubs' media rights value."
The auction was suspended by DFL following the largest rights package's award to Sky. DAZN then lodged a complaint with the German Institution for Arbitration. Mascia expressed her confusion over the situation. "It's sometimes hard to understand that we have to battle legally not just to pay the DFL more money, but to be allowed to pay them at all," she said. A decision on their future plans is expected by next Tuesday.
Despite the ongoing dispute with the DFL, DAZN continues to prioritize compliance with European competition law, as Mascia mentioned during the interview at the German Institution for Arbitration. Regardless of the outcome of the negotiations, DAZN remains committed to its global expansion, as Mascia highlighted, referring to the company as a "global entity."
