The Bundesliga came out with big news on Monday with the announcement of their new four year TV deal with Sky and DAZN.
The Bundesliga’s new TV deal has been confirmed with partners Sky and DAZN getting the new rights. The new deal is worth 4.4 billion over 4 years for the Bundesliga and 2. Bundesliga which guarantees the short term financial future of the two leagues. Although 4.4 billion euros seems like an absurdly high number, this is actually the first time in 15 years that the Bundesliga is seeing a reduction in earnings between deals. The last TV deal for the top two German leagues was €4.64 over four years.
Although it could be seen as slight drop in growth for the revenue it’s still pretty impressive there wasn’t a bigger drop with all of the financial repercussions on the horizon with COVID. Kicker were projecting a 20% drop in revenue which this didn’t come close to, which gives the DFL a lot more security to plan for the coming years.
DFL CEO Christian Seifert said, “The outcome of the tender offers the greatest possible stability in uncertain times for the Bundesliga and 2.Bundesliga clubs as well as for the fans by broadly preserving the revenue situation and regarding the viewing habits.”
With the new TV some of the lower clubs are hoping that a change in how the funds are allocated could be negotiated. Both Werder Bremen and Mainz have already been vocal about wanting a more even distribution among all teams according to Kicker. On the other hand Hans-Joachim Watzke spoke out in almost direct opposition to those statements.
“I believe that the status quo is correct. If you try to weaken the league’s driving force, you weaken the whole league” – Hans-Jachim Watzke
That debate is still to be had as it hasn’t been finalized with the DFL. It will be interesting to see which way the clubs go, with the higher place finishers currently receiving significantly more than the lower sides.