Daily Newsletter

25 September 2024

Daily Newsletter

25 September 2024

DFL to re-tender main rights package as court rules in DAZN’s favour

An arbitration tribunal has partially upheld the lawsuit filed by DAZN at the end of April.

Tariq Saleh September 24 2024

German soccer’s DFL league body will re-auction its key domestic media rights package after a court ruled in favour of global sports streaming service DAZN in its legal dispute with the league.  

In an arbitration procedure under the rules of the German Institution of Arbitration (DIS), an arbitration tribunal partially upheld the lawsuit filed by DAZN at the end of April against the award of rights package B in the domestic media rights tender for the 2025-26 to 2028-29 seasons.

DAZN, one of the DFL’s two incumbent domestic rightsholders, took legal action against the league after missing out on the main package for the Bundesliga's next rights cycle, claiming the DFL acted unlawfully in not accepting its bid in the tender. As a result, the German league was forced to suspend the tender process.

It is believed that package B of Bundesliga rights for the five-year cycle was initially awarded to Sky, as it was in the previous tender. That package, one of four reserved for pay-TV broadcasters only, includes matches played on Friday evenings and Saturday afternoons and comprises a total of 196 per season.

DAZN was not prepared to accept the league’s decision and, therefore, legally challenged the outcome of the rights auction.

Following today’s court decision, the DFL announced that package B will be auctioned again in a new tender process.

After the ruling, DAZN said in a short statement: “DAZN is delighted that the court has ruled in our favor. We remain convinced that DAZN is the best partner for the DFL, for the clubs, and for German football fans.”

In its own statement, the DFL said: “The reasons for the decision will be communicated to the parties in November. Against this background, the DFL is currently refraining from commenting further on the content.

“The DFL will announce details on the continuation of the media rights award after further substantive coordination in the DFL Executive Committee.”

DAZN remains a Bundesliga partner domestically at least for one more season and has also put its dispute in Germany aside to work with the league in other markets.

In mid-August, the OTT platform secured exclusive Bundesliga rights in Spain from the beginning of 2025-26 through the 2028-29 campaign.

Bundesliga International, the league’s global commercial rights division, negotiated that agreement, and its chief marketing officer, Peer Naubert, recently explained that although the dispute with DAZN was unexpected, the two parties are still able to maintain a professional relationship to continue conducting business.

Speaking to international media at last month’s German Supercup, Naubert said: “When the dispute happened in Germany, that came unexpectedly to us, and we were surprised. Then we had conversations and understood it was not perfect for our global collaboration. But anyhow, things need to go on, and we are grown-ups.

“It's a business we are in and just because we are heavily arguing in one market, shouldn't put us in a position that we are not able to close deals in other markets.

“We had good, healthy, and positive discussions around Spain in the past weeks, as we're discussing with them in other markets as well and the communication is also open for the German market, obviously with an elephant in the room. I think we shouldn't over-dramatize the whole thing.”

In the domestic tender, four of the live rights packages (which can now be sold to a single buyer, although this is not compulsory) are for pay-TV, two are technology-neutral covering the second-tier Bundesliga 2, and one is for free-to-air rights to at least nine live games across the whole portfolio (from both leagues, the Supercup, and the post-season relegation playoffs).

The rights lots will in total cover 617 matches per season, while there are also three audio rights packages on offer, as well as one covering ‘digital out of home.’

In addition, new highlights rights packages have also been created, that can be used as early as Mondays following the weekend’s action. One of these will focus on digital platforms, including the broadcasting of 90-second clips.

This is added onto the pay-TV rights for highlight clips following the final whistle from all matches, while the DFL has also said that there may be opportunities during the next cycle for social media clips to be posted during games.

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