Blackstone withdraws from Bundesliga investment talks

• Blackstone is reportedly concerned about protracted negotiations amid fan backlash
• CVC and Blackstone recently made a €1 billion bid for up to an 8% stake in the media rights business.

The German Football League (DFL) has confirmed that Blackstone has concluded negotiations over a potential investment in the Bundesliga’s media rights business.

Bloomberg initially reported that the U.S. private equity firm had pulled out amid concerns that Hwang’s fierce backlash against a potential deal would prolong the process.

The outlet also cited both structural and economic factors surrounding the deal as issues that Blackstone felt would make it extremely difficult to execute.

“Following good discussions, it has been confirmed that Blackstone will no longer be considered as a strategic marketing partner for the Bundesliga and Bundesliga 2 for various reasons,” the league said in a statement.

“The DFL and the clubs have always been aware that the key points and red lines adopted in December place high demands on potential partners.”

Blackstone’s withdrawal leaves CVC Capital Partners with only one remaining bidder, DFL said, adding that it will continue to negotiate only with private equity firms for future investments.

According to Reuters, both Blackstone and CVC recently offered around 1 billion euros (1.07 billion U.S. dollars) for up to an 8% stake in DFL’s media rights subsidiary.

Fan dissatisfaction has led to protests at a number of matches in the Bundesliga and Bundesliga second division in recent weeks.

Several fan groups have expressed concern about the presence of outside investors and argued that the vote to expedite investment negotiations needs to be reconsidered.

Last December, 24 of the 36 teams in Japan’s second division voted to start negotiations, achieving the required majority. The voting stance of each group has not been made public.

However, controversy has arisen over the vote of CEO Martin Kind, who is said to have voted in favor of the deal, even though the Hannover 96 team opposed it. Without his vote, there would not have been a majority, and fans across Germany are calling for a second vote.