DFL holds firm in broadcast rights dispute with DAZN
DAZN is also threatening to withdraw from negotiations over broadcast rights for the four seasons spanning between 2025 and 2029 entirely if the German league body does not award them their desired "package" of fixtures.
DAZN's potential withdraw could leave the DFL without a major financial player in its bid to auction off rights, ultimately the top two German footballing divisions of a great deal of revenue. The DFL, meanwhile, claims it is "well-positioned" for a legal fight.
A major trade dispute that interrupted negotiations over Bundesliga broadcasting rights last week shows no signs of coming to an amicable conclusion anytime soon. German streaming service DAZN saw its bid for a specific package of broadcast rights over the four seasons spanning from 2025 to 2029 rejected; in DAZN's view afoul of German Federal anti-trust laws.
DAZN's bid for a lucrative package of 196 live matches on Friday evenings and Saturday afternoons was awarded to Sky in spite of the fact that DAZN offered more money. The German DFL - responsible for administering Germany's top two footballing flights - requested further proof of financial solvency from DAZN. The German broadcaster claims it wasn't given adequate time to fill this request.
DAZN's first course of legal recourse is to file a complaint with the German Federal Trade Commission. Like most modern capitalist societies, Germany maintains federal laws that prohibit unethical business practices from enabling the formation of business cartels and monopolies. Should this avenue prove unsuccessful, the German broadcaster can take its case to German Civil Arbitration courts and even the European Court of Justice.
Acknowledging that this process "may take years", the DAZN spokesman speaking to Germany's associated press (Deutsche Presse-Agentur) also confirmed that DAZN is considering withdrawing from all further negotiations with the DFL. The streaming service specifically desires "Package B"; the slate of matches that the DFL denied them.
DAZN's withdraw could leave the DFL without a financially strong negotiating partner to sell off its other broadcast packages. Smaller partners will not be able to offer anywhere near as much money for the Saturday evening and Sunday games. The DFL will presumably wish to avoid such a scenario, as Sky is the only other financial heavyweight in the game.
The DFL, for its part, claims that it is "well positioned" for the upcoming legal fight. In a letter published on the association's website, the DFL strongly denies DAZN's accusations. The league body claims that DAZN's eventual submission of a bank guarantee (this week) came too late. DAZN insists that the 24-hour-deadline given by the DFL was unreasonable.
"Subsequent submission of documents after a rights package has been awarded in accordance with the auction rules has no effect," the DFL letter reads, "The DFL once again firmly rejects the argument repeatedly put forward by DAZN that it was not correctly informed about the terms and conditions of the award."
"Of course, the conditions were known to all interested parties prior to auction," the letter continues, "The position was clarified in several letters to DAZN. There is no basis for withdrawing the decision in favor of Sky."