On Media right and European soccer Buli rejected a PE deal
by SCOANGERS (2023-05-25 16:03:22)
Edited on 2023-05-25 16:17:22
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Media rights is a very complicated subject. Some of the trends in the future of tv media (cutting the cord OTV) make it a nightmare for many clubs in the world

The decision yesterday is an interesting one. Especially in Germany where the culture of consensus makes it difficult to make breakthrough/disruptive decisions. The vote yesterday called to suspend the negotiations when we were only talking about 12 percent ownership in 20 years future TV rights… while Spain and France agreed on the deal without time limit

The business model in Germany is an exception “an island in Europa” : rhe p&l of any club in Germany is more or less based on the four quarters rule: one quarter ticketing/merchandising, one quarter TV rights, one quarter nutation / trading rights and one quarter sponsorship by local Dax 40 companies

The other particularity in Germany is that the clubs have a negotiating latitude limited by the role of the Vereins, who can decide to replace the club's management.

In a way, Germany is an isolated model in Europe

When I speak with German leaders they keep repeating the Uli Hoeness rule “you can't spend a euro that you don't have".

And that's why the Chelsea model where if you have 500m in turnover you can spend 1.5 or 2x on recruitment raises questions

German pro football sees the gap with the epl and La Liga (where the ratios are BS because the debt can be canceled by the Spanish authorities) and some in Germany are frustrated to be only the third championship in the uefa index

But again Germany has not decided on the model... the answer is the famous "jein" "yes and no"

In a way, this non-vote pushes FCB or Dortmund towards the creation of a super league which I personally believe will happen sooner than later



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