World News – GB – Report: Bundesliga sees value of overseas TV rights fall by 20%


After having been successful in securing only a marginal cut in its domestic television rights contracts, Germany’s leading football Bundesliga has been less successful abroad

According to German media Sponsors, the German Football League (DFL) could ultimately see the total value of its international broadcasting contracts for the 2020/21 campaign fall by 20% from the 250 million euros (292 dollars) million) that Bundesliga International, the league’s overseas sales division, brought in last year

This 50 million euros (585 million) deficit comes despite an increase in the number of individual agreements, the difficult economic conditions created by the coronavirus pandemic hitting rights holders After abandoning the agreement of 80 territories over five years with Fox, Bundesliga International concluded nearly 50 overseas rights deals, up from 20 in the previous cycle

For the next rights cycle, Bundesliga International had already done some key business overseas.In September 2019, it struck a five-season US broadcast deal with ESPN worth € 35m ( US $ 41 million) per year, according to sponsors, which begins with the 2021/22 campaign In February, just before the pandemic hit Europe, the league signed a four-year contract with Nordic Entertainment (Nent) for Denmark, Finland, Iceland, Norway and Sweden, worth of 17 million euros (19 USD)9 million) per season until the end of the 2024/25 campaign

Even in the midst of the May pandemic, the Bundesliga was able to strike a four-year deal with Japanese pay-TV channel Sky PerfecTV, valid for the same period as the Nordic deal and supposedly worth 16 million euros (187 million) per year, an increase of one third compared to the previous contract in this market

Speaking to sponsors, Robert Klein, Managing Director of Bundesliga International, cited the territories of South America and the Middle East and North Africa (MENA) as markets where financial realities have put obstacles in the way on the road regarding negotiations

Pay-TV operator BeIN Sports confirmed on the eve of the new Bundesliga season that it would not renew its regional deal, citing the impact of broadcast piracy on its valuation model Klein said at the time of this announcement that discussions with other broadcasters in the MENA region were ongoing, while an English-language broadcast partner in sub-Saharan Africa had yet to be confirmed BeIN, for its part, hasn’t strayed completely from the Bundesliga either, holding broadcast partnerships in other territories like France and New Zealand.

« As an example, South America was already a difficult environment before Covid, with macroeconomic challenges and an evolving media landscape, » Klein told sponsors

« Due to the corona, the market practically came to a complete halt when we started our sales activities »

One of the markets where innovative broadcasting solutions have been found is Latin America, where the duration of contracts varies between one and three years The Bundeliga has now set up multi-point of sale broadcasting partnerships in Mexico, Brazil and a 17-country deal with regional telecommunications giant América Móvil for a live and on-demand match

Away from media rights, sponsors also report that the LDF’s business partnerships will exceed € 50 million for the first time in the 2020/21 season, after entering into major partnerships with Amazon Web Services (AWS ) and the giants of the Mondelez confectionery

« This year alone we were able to win two major business partners with AWS and Mondelez, and we will report more positive news in this area over the next two weeks, » Klein told the German outlet.

Bundesliga, EA Sports, FIFA, Electronic Arts, Esports

News from around the world – UK – Report: Bundesliga sees value of overseas TV rights fall by 20%



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