Bundesliga explores option of turning to capital markets to raise $300m

April 3 – The Bundesliga is reportedly looking at private equity firms to raise finance of up to $330 million to help cashflow the league and its clubs through the Covid-19 crisis.

With concern mounting that broadcast rights holders will withhold rights fees with matches suspended and no clear restart date in sight, the Bundesliga is seeking a pre-emptive solution. But whether they would secure any capital raised against future rights or offer some form of equity in the Bundesliga (the normal route when raising venture capital money) is at this time not specified.

Apollo Global Management and KKR are two firms named by Bloomberg as reportedly interesting in providing finance, though formal talks have not begun.

The DFL has been in emergency talks with its domestic broadcasters – pay network Sky Deutschland is the main partner – over the 2019/20 season’s final rights payments. As with other major European leagues, the possibility of completing the season behind closed doors is also being discussed.

The Bundesliga had already postponed the opening of the tender for its next rights cycle – 2021-24 – until the end of June.

Different estimates put the potential loss of revenue to the Bundesliga if matches are not resumed at between $700 million and $1 billion. According to its latest financial report the Bundesliga generated $5.3 billion in revenues over the 2018/19 season. Media rights account for 36% of that total.

Contact the writer of this story at moc.l1711726869labto1711726869ofdlr1711726869owedi1711726869sni@n1711726869osloh1711726869cin.l1711726869uap1711726869