FIRST TEAM
12/07/2020

Bundesliga clubs show solidarity in distribution of TV money

The clubs of the Bundesliga have demonstrated their solidarity in this time of crisis brought about by the Coronavirus pandemic. In future, revenue generated from TV broadcasting rights will be distributed between the 36 clubs of the Bundesliga and Bundesliga 2 in a more equal manner than before. This was announced by the German Football League (DFL) after its members assembly between the clubs which was held virtually on Monday afternoon.

DFL managing director Christian Seifert explained that the new system of distribution for the approximately five billion euros of media revenue should place more emphasis on performance , youth development and the interests of the different clubs.

The distribution of revenue from the sales of national media rights will be based on a new four-pillar model. The distribution of revenue from the sales of national media rights will be based on a new four-pillar model. The "equal distribution" category accounts for 53% of revenues in the first two years, and 50% thereafter. The performance of the past five seasons is weighted first at 42 percent, then at 43%. The remainder comes from the pillars "young talent" (3-4%) and "interest" (2-3%), a new category for distribution that takes into account the clubs' efforts to have as great a social impact as possible.

Briel: ''An impressive outcome overall''

''The Bundesliga and Bundesliga 2 have a very diverse membership, which meant the DFL executive committee were faced with a very complex task in trying to carve out an appropriate system of distribution while taking into account the vastly different interests involved. The outcome is quite impressive overall and our colleagues deserve our thanks for this. It is clear that the executive committee was concerned with stabilising the clubs in these challenging times - in which many have suffered a severe drop in revenue - while on the other hand respecting the individual performance of certain clubs,'' said TSG managing director Frank Briel.

The revenue generated internationally will also be distributed according to a new system. In future, the difference in funding each club receives will not be as large as it currently is. ''The discrepancy will definitely be reduced,'' said Seifert, who went on to explain that the clubs are facing very difficult times: ''Last season was a mild breeze at worst, now the storm is coming,'' said the DFL managing director.

Including last season, the clubs are likely to suffer approximately 2 billion euros in lost revenue up to the 2021/22 season, explained Seifert. The potential absence of all revenues from in-stadium spectators would lead to a loss of 650 million euros. The slump on the transfer market will amount to between 250 and 300 million euros, which means that the total loss of turnover for the 2020/2021 season will amount to approximately one billion euros, added Seifert.

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