Germany’s DFL to collect NBOs for EUR 3bn media rights stake

Germany’s football governing body is expected to collect initial offers on 24 April from several global large-cap sponsors, the sources said. The process is for a 12.5% to 15% stake in its media rights subsidiary for the Bundesliga’s first and second-tier divisions, as reported by local media.

Advent International, Blackstone, Bridgepoint, CVC Capital Partners, EQT Partners and KKR are among the parties expected to submit initial proposals, one of the sources said. Sixth Street is also reported to be interested in the stake.

Sale advisers Deutsche Bank and Nomura have emphasised a need for prospective suitors to have an existing German presence to be competitive in the process, one of the sources said. Some of the sponsors could also look to team up in a consortium to mount an approach for the stake amid a dearth of available financing, a lawyer following the process added.

The DFL’s media rights business is valued at between EUR 17bn and EUR 20bn, meaning that a 15% stake is worth between EUR 2.5bn-EUR 3bn, according to reports. The rights are expected to be granted for 25 to 30 years with all 36 clubs across the two divisions retaining control.

The process, which launched in March, is expected to conclude by the end of June, although the timetable could slip further given the slow pace of the process up until now, the lawyer said. The transaction also requires the approval of two-thirds of the DFL’s 36 members clubs, which could potentially cause further delays, the lawyer added.

Originally slated for last year, the hunt for an external investor was delayed due to the resignation of its former CEO Donata Hopfen and a prior lack of consensus among German clubs.

The governing body, now managed by Axel Hellmann and Oliver Leki, released a statement in February saying that it had agreed on "key guidelines for the further development of German professional football and a possible strategic partnership at league level,” following discussions to bring 36 clubs to a consensus on the process. The process will be structured as a temporarily limited minority interest in license revenue from media rights, and not as a sale of shares in the Bundesliga, the statement added.

Advent, Blackstone, EQT, KKR, Nomura, Deutsche Bank and CVC declined to comment. DFL, Bridgepoint and Sixth Street did not respond to requests for comment.

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• Topics
• DACH
• Media
• Buyouts
• GPs
• Germany
• Advent International
• Blackstone Group
• CVC Capital Partners
• EQT
• KKR
• Nomura
• Deutsche Bank