Impact of the DAZN Judgment on the League and its Supporters
Third Try: The league intends to sell its broadcast rights and maximize earnings. The auction extends nearly two weeks, with an undetermined start date, thereby leaving it uncertain who will transmit Bundesliga matches from 2025-2026. Below are some Q&As.
What's the impact on fans? Due to the auction's delay, fans will find out later which subscriptions they need for the next season. Although only one contract may suffice in the future, multiple subscriptions might still be required beginning in 2025. The auction's hold on the current Bundesliga season has no immediate effect, and viewers' contracts with Sky and/or DAZN remain valid.
What transpires now? The German Football League (DFL) will restart the halted auction process. Consequently, Package B, previously granted, will re-enter the market. It includes Saturday games at 3:30 PM, Friday evening games, and relegation matches, totaling 196 live games. The DFL and DAZN disagreed about Package B's allocation.
Why is this package so significant? Around 80% of the season's approximate 1.1 billion euros in revenue comes from pay-TV, and this ratio with free TV is unlikely to change after the renewed auction. Package B is the most substantial pay bundle and is anticipated to hold the largest chunk of total earnings.
Which other packages hold value? Packages A, C, and D are also substantial. They encompass further pay-TV rights for live broadcasts of the 1st league.
- A includes conferences.
- C offers the top Saturday games at 6:30 PM and the Supercup, with 34 matches but high demand due to top contests.
- D covers Sunday games, with the ability to present more than one game on free TV among its 79 live games.
What are the consequences of the restart for Sky and DAZN? Both companies now know their competitors' bids for Package B, which they were previously unaware of. Reportedly, DAZN offered around 400 million euros per annum for Package B, totalling approximately 1.6 billion euros for the four-year contract period. This information could aid Sky in devising a new offer. They now understand that a guarantee is necessary and can prepare accordingly to surpass competitors.
What does this signify for the DFL? The DFL appeared less favorable when the auction was halted. The arbitral tribunal found a procedural error and granted partial relief against the award of Package B in the media rights tender for the 2025/26 to 2028/29 periods. However, the restart could prove beneficial for the league, as competitors might bid higher, potentially securing more revenue.
What does this mean for the clubs? Bundesliga clubs must also wait for the conclusion of the auction and subsequent TV money distribution negotiations to finalize their preparations for the season commencing in less than a year. The uncertainty could complicate contract negotiations with both new and existing players. Higher revenues in the end may still lead to club satisfaction.
What other packages are available in the auction? In the pay-TV area, the DFL offers 275 games from the second league, including 98 conferences. The most valuable free-TV package encompasses Saturday highlights, currently broadcast on "Sportschau." There's a minimal free-to-air live offer. Package E contains three first-league games, one second-league match, four relegation encounters, and the Supercup. The 33 Saturday evening games from Package G could, like at Sky and Sport1, also be broadcast simultaneously on free and pay TV in the future. Additionally, the DFL sells six more highlight rights packages for free-to-air broadcasters. There are also rights packages for audio and digital outdoor advertising.
The German Football League (DFL) will resume the auction for Package B, previously granted but halted due to a dispute, as part of the sellings to maximize earnings for the 2025-2026 Bundesliga seasons. The DFL aims to sell various packages in the auction, including Package B, which holds significant value as it includes key live games and contributes a large portion of the league's revenue.
