{"id":125676,"date":"2021-05-19T16:31:47","date_gmt":"2021-05-19T16:31:47","guid":{"rendered":"https:\/\/precoinnews.com\/?p=125676"},"modified":"2021-05-19T16:31:47","modified_gmt":"2021-05-19T16:31:47","slug":"bundesliga-scraps-sale-of-stake-in-overseas-broadcasting-rights","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/bundesliga-scraps-sale-of-stake-in-overseas-broadcasting-rights\/","title":{"rendered":"Bundesliga scraps sale of stake in overseas broadcasting rights"},"content":{"rendered":"
MUNICH (Reuters) – Germany\u2019s top-flight soccer league has scrapped plans to sell a 25% stake in its overseas broadcasting rights after resistance from Bundesliga clubs concerned about private equity firms meddling in their affairs.<\/p> The German Football League (DFL), which organises the country\u2019s top two leagues, said in a statement on Wednesday that the talks on the stake sale were not being continued for now.<\/p>\n Earlier this month, DFL shortlisted buyout funds including KKR, Bridgepoint and CVC for a sale that had been expected to value the Bundesliga\u2019s overseas broadcasting rights at roughly 2 billion euros ($2.4 billion).<\/p>\n The league\u2019s soccer clubs needed to agree with a two-thirds majority on moving to the final phase of the auction, but failed to achieve that threshold.<\/p>\n In Italy, several clubs there also derailed a planned sale of a stake in the Serie A soccer league\u2019s broadcasting rights unit to buyout firms CVC and Advent. The sale of a 25% stake in the Bundesliga\u2019s overseas broadcasting rights, worth up to 500 million euros, would have brought outside investors into one of soccer\u2019s biggest leagues at a time when it is contending with a plunge in revenue.<\/p>\n Earnings have shrunk because the Bundesliga is having to stage matches in empty stadiums during the COVID-19 pandemic and international TV networks are struggling with reduced advertising revenue from customers.<\/p>\n \u201cIrrespective of (the scrapping of the sale), there was agreement that it is essential that clubs and DFL work together on concepts to push international marketing in particular,\u201d DFL said.<\/p>\n DFL\u2019s overseas broadcasting rights business is expected to generate revenue of 230 million euros in 2020\/21 with sales projected to grow by about 8% annually to reach 478 million in the 2029\/30 season, according to documents prepared for potential investors.<\/p>\n Distributable income will rise by 10% annually from 161 million to 385 million over the same period, the documents also showed.<\/p>\n ($1 = 0.8182 euros)<\/p>\n