“Trying to mislead”
DFL continues to stir up billion-dollar disputes with DAZN
April 27, 2024, 12:37 p.m
It’s about billions and a lot of broadcast time: The German Football League has TV rights to sell, DAZN wants them. But instead of negotiating, they argue publicly. With violent accusations and threats of legal consequences.
In the billion dollar dispute with DAZN, the German Football League (DFL) sent two letters to the 36 professional clubs. In one she is preparing the clubs for lower TV payments, in the other she is again making serious allegations against the internet sports channel. “DAZN is once again deliberately misrepresenting facts, both in its most recent letters to the DFL and in public statements, making abbreviations and attempting to mislead the public,” writes the DFL management in circular No. 205. In the circular 206, which was sent later, states that 80 million euros from the current TV contract are not being paid out as planned.
DAZN’s actions with the threat of legal action “seem to primarily serve one goal: to drive a wedge into the league and to sow doubts that the people in the committees and management act exclusively in the interests of the Bundesliga and 2nd Bundesliga “, it continues. “The aim is apparently to create the impression that the DFL rejected a much more lucrative offer without reason and against all economic reason. This absurd claim has no basis.”
DAZN is planning legal proceedings
The global media company announced on Friday that it would take the dispute with the DFL over rights package B to court; according to the DFL circular, the arbitration claim should be filed on Tuesday. The internet sports broadcaster also intends to completely withdraw from the Bundesliga TV tender if it does not receive package B.
The sales process for the audiovisual media rights of the Bundesliga was interrupted the previous week. The lack of a bank guarantee from DAZN was controversial. In terms of content, the DFL rejected the streaming service’s allegations in the letter to the clubs, as it did in a press release on Friday. “Our responsibility also includes ensuring that the income required for the league, clubs and DFL GmbH is actually realized,” emphasized DFL managing directors Steffen Merkel and Marc Lenz in their circular.
The dispute is about package B of the TV rights auction with live games on pay TV. It is the largest package with the matches on Saturday at 3.30 p.m. and on Friday evening as well as the relegation games. This package includes a total of 196 live games.
“Normal process in working capital management”
In a second letter, the DFL announced that less money than planned would be distributed to the 36 professional clubs in two months. “The distribution rate for June 2024 will be reduced from the original 127 million euros to 47 million euros,” says a DFL letter to the 36 clubs.
The letter continues: “The reason for this is that proceeds of EUR 80 million can only be collected at a later date this year, as payments from partners could not be made on the contractual due dates. At the instigation of those concerned In this respect, partners had to make agreements about later payments.” In total, “the currently forecast total distribution amount will decrease from EUR 1,179 million to EUR 1,099 million.” It is currently not known which company it is about besides DAZN.
“The DFL already agreed a new payment plan with DAZN in February for the installments in March and April,” said a spokesman for the media company when asked: “This is a normal process in working capital management between business partners.” It went on to say: “The DFL management has expressly contractually agreed to these new conditions.” The missing money will reportedly be paid with interest at a later date.