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German football league abandons media rights sale amid protest

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The German Football League has made the decision to abandon its plans to sell an eight percent stake in its media rights business to a private equity firm amid strong opposition from supporters.

Initially, the DFL proposed a 20-year agreement to sell the stake, which had received approval from clubs in December. However, escalating fan protests across Bundesliga and 2. Bundesliga matches disrupted fixtures, prompting the DFL to reassess its plans.

“We have determined that continuing negotiations no longer seems possible,” stated a spokesperson for the DFL. “The disputes have increasingly jeopardized match operations, specific match schedules, and thus the integrity of the competition.”

The ongoing fan demonstrations also highlighted a lack of broad acceptance for the December vote from clubs, raising legal questions under Germany’s 50+1 rule, which requires majority ownership by clubs’ members in Bundesliga sides.

The recent disturbances during matches, such as fans using remote control cars with flares and attaching bike locks to goals, further underscored the challenges the DFL faced in reaching a consensus.

“Given the circumstances in the league association with its 36 member clubs, the viability of a successful contract conclusion in terms of financing the 36 clubs can no longer be guaranteed,” the DFL spokesperson added.

Despite a prior rejection of a 12.5 percent stake proposal in May, a reworked plan gained backing from 24 of 36 clubs in December. However, opposition to partnering with a private equity firm remained strong among many clubs.

Hans-Joachim Watzke, CEO of Borussia Dortmund and a member of the Bundesliga supervisory board, emphasized last year that the proposed investment aimed to enhance the Bundesliga’s international competitiveness and improve its marketability.

Following Blackstone Inc’s withdrawal last week, CVC Capital Partners remained the sole bidder. The proposed investment aimed to enhance the Bundesliga’s international competitiveness and improve its marketability, given the significant gap in international TV rights revenue compared to other leagues like the Premier League.

In light of these developments, the DFL executive committee has opted not to pursue the sale further and will engage in discussions with clubs to address the implications of this decision in the coming weeks.

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