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- Both companies presented improvement plans in January, and negotiations will continue going forward.
- DFL to sell up to 8% stake in media and commercial revenue
The German Football League (DFL) will select either CVC Capital Partners or Blackstone for its strategic partnership in the Bundesliga after narrowing down a group of potential investors.
The league’s decision to continue negotiations with both private equity firms was unanimously agreed to at a board meeting earlier this week.
The vote came after potential partners CVC, Blackstone and EQT submitted proposals to DFL executives, with three emerging from an original group of five candidates that was pared last month.
All three submitted improved proposals in January that met the organization’s expectations “both financially and in terms of content.” EQT has now been removed from the process as its proposal was deemed inferior to those made by his two remaining parties.
CVC and Blackstone will continue negotiations with the league over the coming weeks.
The league announced last month that it would formally welcome offers for a minority stake in its media rights business, following a vote by 36 Bundesliga teams and two Bundesliga teams. The proposal received the required two-thirds majority with just one vote.
The stake, which represents up to 8% of DFL’s income from media and commercial rights, is on sale and the deal will run for up to 20 years. The acquisition price is expected to be between €800 million (US$871.1 million) and €1 billion (US$1.09 billion).
The DFL has established a new marketing company to oversee the implementation of the partnership, with most of the funds going to the league’s digitalization and internationalization.
The deal has been controversial among fans, with many organizations speaking out against the prospect of funding. Protests are expected to take place at the stadium over the next weekend.
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