German football league clubs give green light for investor stake in Bundesliga
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The Bundesliga is ranked as Europe’s second biggest football league by revenue after England’s Premier League.
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BERLIN - Germany’s first and second league football clubs voted on Monday in favour of letting a financial investor take a stake in the Bundesliga media rights company, sources familiar with the matter told Reuters.
The decision comes as football leagues in Europe are increasingly eyeing external funding via broadcasting arrangements to boost revenues and increase their global reach.
Its future partner will receive up to 8 per cent of Deutsche Fussball Liga’s (DFL) license income from the exploitation of commercial rights, DFL said, which would correspond to a value of between 900 million and 1 billion euros (S$1.3 billion).
The exact amount is “part of the negotiations with the bidders”, DFL said, adding that the agreement would be sought for a duration of 20 years.
According to sources, investment companies Advent, Blackstone, CVC and EQT have submitted non-binding bids.
In order to start negotiations, the support of two-thirds of the Bundesliga’s clubs was needed. Of 36 clubs, 24 voted in favour, two sources told Reuters. German magazine Kicker was first to report the outcome.
The Bundesliga is ranked as Europe’s second biggest football league by revenue after England’s Premier League. REUTERS
