German football league expects at least four bids in 1 billion euro stake sale, sources say
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German football league expects at least four bids in 1 billion euro stake sale, sources say
FRANKFURT (Reuters) - German football's governing body Deutsche Fussball-Liga (DFL) has invited five financial investors to apply for a stake in the Bundesliga's marketing rights, two sources familiar with the matter told Reuters.
Investors would be expected to pay 900 million to 1 billion euros ($981 million-$1.1 billion) to the DFL over the next few years, according to a letter from it to the 36 professional clubs seen by Reuters.
The potential strategic partners being considered are Advent, Blackstone (BX.N), Bridgepoint (BPTB.L), CVC and EQT (EQTAB.ST), according to the DFL letter. The DFL added that they could help strengthen its national media product and expand its digital and international business.
DFL expects preliminary bids from at least four of these investors at the beginning of December, the two sources said.
DFL, Advent, Blackstone, CVC and EQT declined to comment. Bridgepoint was not immediately available for comment.
At a general meeting on Dec. 11, the Bundesliga clubs are to vote so that the process can proceed. A two-thirds majority is required.
In this reverse auction process, for up to 1 billion euros the financial investors are to acquire a maximum of 8% in a newly founded marketing company for 20 years, which will hold the television, advertising and digital rights to the Bundesliga.
The process, which will be the DFL's third attempt at a rights stake stale - a previous proposal in May failed to win the clubs' backing - is about "securing the sporting and economic competitive position of the federal leagues," the letter states.
