November 28 – The on-off German Football League (DFL) venture into private equity markets is reportedly advancing again with the DFL having informed its 36 clubs that it has approached five financial investors.
The potential investors are being asked how big an equity stake they would require for the investment up to $1.1 billion in the league’s media rights. The proviso is that the stake in the rights holding company created to commercially exploit the Bundesliga assets will be below 10%.
Advent International, Blackstone, Bridgepoint, CVC Capital Partners, and EQT, are, according to Reuters, the private equity firms that have been approached.
DFL expects preliminary bids from at least four of these investors at the beginning of December, say reports.
A DFL general meeting is scheduled for December 11, where clubs are expected to vote on whether to move ahead with the money raising. For the sales process to continue, a two-thirds majority is required.
Previously clubs, in May, voted against selling off a stake in their media interests to private equity. At the same time there was a management change within the DFL that was tasked with reworking what is essentially the same investment proposition.
In 2021 the clubs similarly refused to get behind a proposal to bring in private equity funding.
In a letter send to the clubs, the DFL sad that the rationale behind the money raise was about “securing the sporting and economic competitive position of the federal leagues.”
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