Unanimous decision by the DFL Executive Committee: process continues with two potential strategic marketing partners
17 January 2023 – In a unanimous decision taken on Wednesday, the DFL e.V. Executive Committee reduced the number of interested parties bidding to enter a strategic marketing partnership from three to two, as provided for in the process. The next steps of the process and negotiations with the two potential strategic marketing partners Blackstone and CVC will take place in the coming weeks.
The DFL Executive Committee had already reduced the number of interested parties in December from five to three. The DFL management then held further talks and management presentations with these three potential partners. On this basis, the interested parties then revised the initial bids they had submitted in November and presented new confirmatory bids before the deadline in January. Both the economic terms and the contents of the bids are in line with the key points that were approved by the DFL Members Assembly on 11 December 2023.
On Wednesday, the three interested parties met with the DFL Executive Committee in Frankfurt. The subsequent decision was based on evaluation criteria that were approved by the Executive Committee and presented at the Members Assembly. They include the financial terms of the bids submitted and the fulfilment of DFL requirements pertaining to governance, in which the strictly limited co-determination rights of a potential partner are clearly regulated. In addition, the added value that a partner brings is of central importance and was incorporated as a further key criterion in the current decision. This value includes in-depth knowledge of and existing structures in international media markets, a network of global media companies and other groups from various industries that are able to help improve market access, and expertise in the successful development of digital platforms. With these and other added values, a partner will support the league and clubs in their efforts to continue developing the DFL business model.
The next step in the process now involves a comprehensive due diligence phase, in which a further examination of the partners’ added value will be performed in the coming weeks.
UPDATE from 13 February 2024: Following constructive discussions, Blackstone is no longer under consideration as a strategic marketing partner. This decision comes in light of accumulated critical points, in particular the restrictive governance and economic aspects. The process will continue as planned with CVC as per the agreed timeline. Therefore, the next steps and negotiations with the interested party will be conducted by the DFL management in the coming weeks. The final decision will ultimately be made by the DFL Executive Committee.
Process background
The conclusion of a strategic marketing partnership is only possible within a clearly defined framework. The relevant key points and guidelines were also adopted by the clubs on 11 December 2023. These include:
- The licensing model that is envisaged involves a partner holding only a minority stake that amounts to a maximum of eight percent of the proceeds from central marketing and is not a sale of shares.
- A partner is not granted any co-determination rights relating to sporting aspects such as match scheduling. Specifically, sovereign rights and functions of the DFL as well as the influence and rights of participation of the clubs will be fully maintained at all times. Areas that are not taken into consideration include new kick-off times, an expansion of the league and the staging of competitive matches abroad.
- The focus is on the further development of the DFL business model. It is explicitly not about a short-term cash injection or about more money for salaries and transfer fees.
- The planned governance structure is set up in such a way that a clear majority in the committees of the newly established marketing company – and thus the decision-making authority of the representatives of DFL e.V. (and consequently the representatives from the ranks of the clubs) – will always be ensured when key topics/issues are discussed and decisions are taken. The internal organisation of DFL e.V. and DFL GmbH, in particular the composition of the executive bodies (such as the DFL Members Assembly, the DFL Executive Committee, the DFL Supervisory Board, the DFL management and the DFL Licensing Committee), will remain completely unaffected by any strategic marketing partnership.
The Executive Committee is only authorised to conclude a strategic marketing partnership if these and other key points are taken into account.
Would you like to find out more about this topic? You will find a FAQ with information on key points and guidelines for a strategic marketing partnership at league level as well as answers to frequently asked questions here.