Private equity firms have bid roughly €1.8 billion ($2 billion) for a stake in the media rights business of the Bundesliga, Germany’s main football competition, people with knowledge of the matter said.
(Bloomberg) — Private equity firms have bid roughly €1.8 billion ($2 billion) for a stake in the media rights business of the Bundesliga, Germany’s main football competition, people with knowledge of the matter said.
Officials at governing body Deutsche Fussball Liga told clubs in recent days they received four bids for a 12.5% stake in the new unit which ranged from around €1.75 billion to €1.85 billion, the people said. The offers assumed the business will receive proceeds from the domestic and international broadcasting rights of Germany’s top professional football teams for 20 years, the people said.
Advent International, Blackstone Inc., CVC Capital Partners and EQT AB have been competing for the deal, Bloomberg News has reported. DFL also received a fifth proposal from KKR & Co. which was deemed too low, Bloomberg News has reported.
The league is seeking to negotiate the price up to around €2 billion, the people said. It may only be able to achieve that figure if it does a 25-year deal, some of the people said, though DFL has indicated a preference for a 20-year contract. Deliberations are ongoing, and it’s unclear whether the German clubs will ultimately accept a deal with one of the private equity firms.
DFL said last month it received “a number of preliminary, indicative offers from several interested parties.” The 36 Bundesliga teams are set to vote on May 24 about whether to proceed with a transaction.
Representatives for DFL and the buyout firms declined to comment.
–With assistance from Aaron Kirchfeld.
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