The German Football League (DFL) are set to alter their revenue distribution model for both domestic and overseas broadcast rights starting from next season, in order to support club finances following the COVID-19 pandemic.
The current system, which was introduced in 2017, sees 70 per cent of domestic rights revenues shared based on a club’s performances from the previous five seasons.
The new model will see a greater share of the revenues being paid by TV broadcasters Sky Deutschland and digital sports media company DAZN, which is reported to be €1.16 billion annually.
In the 2021/22 and 2022/23 seasons, 53 per cent of the annual fee paid by the broadcasters will be divided equally among the clubs, which will then be followed by a 3 per cent decrease to 50 per cent for the next two seasons.
Chief executive of the DFL, Christian Seifert commented: “We are trying to make decisions in really uncertain times, which are primarily aimed at driving all 36 clubs through this crisis. These are not times for radical solutions, but for reliable solutions in which one looks ahead.”
Changes to the DFL’s international broadcast rights will further see the revenue distributed more equally between the 18 top tier clubs, with a rise from 25 per cent to 35 per cent. The remaining revenue will be shared out based on historical performance in European competitions.
The impact of COVID-19, however, has had a negative influence on the budgets of broadcasting companies and accompanied with the loss of BeIN Sports as a broadcasting partner for the Middle East and North Africa, the DFL is predicting a €70 million decrease in income for the 2021/22 season compared to what was received in the 2019/20 campaign, which was around €180 million.
Author: William Hebb