Bundesliga Follows in the Footsteps of LaLiga by Selling a Portion of its Audiovisual Rights

The German competition examines this transaction with Deustche Bank as consultant.

It is becoming increasingly normal for the main European leagues to sell a portion of their rights. LaLiga and Ligue1 have already done so with CVC, a decision that has been well reported due to Real Madrid and FC Barcelona’s rejection, although the Catalans have since altered their minds.

Bundesliga Follows in the Footsteps of LaLiga

Now the Bundesliga is considering “copying” LaLiga, as DFL, the organisation that runs the first and second divisions of the German professional league, is strongly considering executing such an operation with Desustche Bank as the advisor.

20% of a new commercial enterprise for 18 billion dollars.

Not just Deustche Bank will be working on this matter. He will be accompanied by Nomura Holdings, advisor to the DFL (German Football League), during the investigation of the potential benefits of foreign funding. A priori, according to the American media, the plan would be to establish a business in which the rights to the two competitions would be lodged.

The DFL would contemplate selling 20% of the business for approximately 18 billion dollars. Bloomberg reports that ten funds are interested and will submit their proposals to the league in September. These include Advent International, Blackstone Inc., CVC Capital Partners, EQT AB, and KKR & Co.

Bloomberg says that the merger between the DFL and Deustche Bank happened because the CEO of the bank, Christian Sewing, put pressure on some of the biggest German soccer clubs.

To discover additional sources of finance, DFL is considering more than just private equity funds. Other choices include loans and other concepts, and it is uncertain which system the competition’s regulating board will choose.

Donata Hopfen, executive director of the DFL, addressed this topic earlier this month: “The internal preparations are complete, and we are beginning the formal procedure, although it is not yet obvious what the union will look like.”

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