German Football League and Dazn starting over
The auction enters its second round, but in reality, it starts from scratch. On November 25, the bidding process for the broadcasting rights of the Bundesliga began anew. The 36 clubs in the first and second leagues will closely monitor the competition, as it represents their most important source of revenue. Currently, the Deutsche Fußball Liga (DFL) receives around 1.1 billion euros per season for the broadcasting rights. The organisation, which manages and markets the men's game, distributes the money to the 36 clubs based on a formula.
The auction covers four seasons beginning with 2025/26. The process was interrupted in the spring. The reason: Sky, the pay-TV broadcaster, was awarded the so-called Package B, the largest and most expensive, which includes 196 first division games on Friday and Saturday afternoons. The streaming service Dazn lost out, despite offering a higher price – reportedly 400 million euros per season, compared to Sky’s 320 million euros. Dazn did not accept the decision, and went to the German Arbitration Institute. On September 24, there was a ruling partially siding with Dazn, meaning the DFL has to repeat the auction.
Offers not „compliant with the tender“
At the heart of the dispute was a bank guarantee that Dazn, according to the DFL, submitted too late. The DFL argued that Dazn's offers were not „compliant with the tender“. Dazn, a platform owned by American-British billionaire Leonard Blavatnik, accused the DFL of defamation, claiming that Dazn’s credibility as a business partner had been severely damaged.
Now, the auction has resumed. The results are expected to be announced on December 5. It is assumed that Dazn will be among the bidders for Package B. Sky Deutschland insists that it is well-positioned for continued media rights allocation. There is also speculation in the media and sports industry that one or two new bidders could enter the process, such as Deutsche Telekom, US internet giants – Amazon has already broadcast some Bundesliga games in 2020 – and RTL. While RTL broadcasts national team games, and the Europa League and Conference League, it is unlikely to be interested in the most expensive package with live Bundesliga broadcasts.
Sky Deutschland has said it will not bid at any cost for Package B. A combination of the Saturday afternoon conference (Package A) and the evening match (Package C) could also be attractive.
Industry experts do not expect the DFL to achieve the current level of 1.1 billion euros per season for the media rights. A sum of over 900 million euros would be seen as good, while 1 billion euros would be a major success. The weak economy and subdued consumer sentiment are dampening the willingness to pay for sports rights.
Balance between price and security
The DFL’s primary goal is to strike a balance between an attractive price and payment security. According to sources, the DFL has made adjustments to the security requirements after the conflict with Dazn, in coordination with the Federal Cartel Office. Reliable and regular revenue from media rights is particularly important for financially weaker clubs. Currently, 80 million euros in payments are overdue, including 50 million euros from Dazn. The DFL has granted an extension until the end of this year.