By Paul Nicholson
October 4 – A boardroom bust-up has taken place at Highlight Communications that could see the company’s sports media assets come under the control of Dieter Hahn, the former Kirch executive who is deeply implicated in the alleged German cash-for-votes scandal around the award of the 2006 World Cup to Germany, and the secret slush fund used to buy broadcast rights to Bayern matches.
Highlight, headquartered in Switzerland but quoted on the Deutsche Börse in Frankfurt, Germany, is the 100% owner of TEAM, the agency that sell the rights to UEFA’s club competitions including the Champions League. 60% of its shares are held by Constantin Medien which Hahn chairs and owns nearly 30% of the company’s stock. Constantin’s main asset is sports channel Sport1.
Hahn is refusing to acknowledge the validity of rival shareholders’ stakes or the voice of the board and is engineering a coup around the sell off of the company’s film division, against the wishes of the other shareholders, and consolidating all the business focus in the sports sector in a company he would control.
Hahn has been a long-time power player in German media who has survived numerous scandals in Germany, not least the spectacular crash of Kirch Group. What is of major concern to investors are his links to the 2006 World Cup bid and the acquisition via Kirch-owned agency CWL of broadcast rights from countries who had voting members on FIFA’s executive committee.
The scandal has already brought down the biggest name in German football – Franz Beckenbauer – as well as former president Wolfgang Niersbach. Hahn through his Kirch executive position had oversight of the deals.
Hahn helped facilitate the process of buying the2006 World Cup votes by using media vehicles under his control to acquire the rights.
Documentation obtained by Insideworldfootball contradicts the assertions of senior German 2006 World Cup officials that no financial inducements were paid to land the tournament and that a €6.7 million slush fund was set up to secure the event.
A secret memo from June 2000 appears to authorise thousands of dollars being paid by associates of German bid executive Fedor Radmann to private bank accounts linked to four FIFA voting members.
The correspondance, dated June 6, 2000, was sent by a lawyer of German media company Kirch to then Kirch CEO Hahn outlining a so-called “consultancy agreement”.
The letter appears to give the green light for payments to be offered in return for television rights to specially-arranged Bayern friendlies against four countries who had voting members: Malta’s Joseph Mifsud, Trinidad’s Jack Warner, Thailand’s Worawi Makudi and Slim Chiboub of Tunsia.
Bayern played Thailand on June 3, 2000, Malta on January 12, 2001, and Tunisia five days later. The match against Trinidad & Tobago was never held.
The timing of the letter is highly significant in that it is dated just a few days after a lucrative tv deal was struck for Bayern, whose president at the time was Beckenbauer, to face Malta in a friendly.
The contract, negotiated by broadcasting company CWL, which was owned by Kirch, was signed by then Maltese FA president a month before the vote for the 2006 hosts and included a remarkable clause stating that its very existence should remain secret. That Hahn was aware of the deal and sanctioned it as the senior executive as Kirch is the issue.
Mifsud ending up voting for Germany who edged home 12-11 over South Africa in the 2006 bid.
Hahn has so far remained in the shadows with his dealings but his bid for control of Highlight Communications puts him in the spotlight. So does his methods to achieve his personal objectives.
Contact the writer of this story at moc.l1713983952labto1713983952ofdlr1713983952owedi1713983952sni@n1713983952osloh1713983952cin.l1713983952uap1713983952