Germany’s professional football body has failed to secure backing from clubs to sell a stake in its media rights to private equity.
(Bloomberg) — Germany’s professional football body has failed to secure backing from clubs to sell a stake in its media rights to private equity.
DFL Deutsche Fussball Liga GmbH did not secure the two thirds majority of 36 Bundesliga clubs needed to proceed with the plan at a meeting on Wednesday.
DFL wanted to sell a stake in a subsidiary housing Bundesliga broadcast rights to a private equity investor in a bid to tap their cash and expertise and help Germany’s top clubs keep pace in the ultra-competitive world of European football.
Buyout firms CVC Capital Partners, Blackstone Inc. and Advent International were among those interested in striking a deal, Bloomberg News reported previously. Firms bid as much as €1.85 billion ($2 billion) for a 12.5% stake in the new entity.
DFL required the backing of at least 24 clubs competing across the top two Bundesliga divisions to proceed with a plan but only 20 voted in favor at Wednesday’s meeting. A host of clubs, including FC St Pauli, FC Köln and FC Augsburg, expressed reservations in the run-up to the vote.
“For us it’s clear that with today, the process is over,” Hans-Joachim Watzke, chief executive officer of Borussia Dortmund and a DFL executive, told reporters in Frankfurt. “There was a clear majority, but not the majority we were looking for.”
Operators of Europe’s top football leagues are opening their doors to new investors and a number have raised funds by selling stakes in media vehicles. Private equity funds, flush with cash and in search of recurring revenue streams, are willing buyers—CVC has already struck similar deals in Spain and France.
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