Recent negotiations for media rights in German football have resulted in a revenue increase, totaling 1.121 billion euros annually. However, the allocation of these funds has sparked disputes among clubs, particularly over the ‘Interest’ pillar. Concerns about fairness in distribution have been raised, with some clubs arguing for a focus on performance rather than historical fan base. As discussions for a new revenue model intensify, the financial disparities between Bundesliga and lower division clubs remain a pressing issue.
Current Money Distribution in German Football
In recent years, the distribution of media rights revenues in German football has become a hot topic among clubs. The DFL successfully negotiated media rights for the upcoming seasons from 2025/26 to 2028/29, securing a revenue increase of nearly two percent. This brings the total annual income from media rights in Germany to an impressive 1.121 billion euros, a rise from the previous average of 1.1 billion euros.
Despite this success, a rift has emerged among the 36 clubs regarding how these funds are allocated. The current revenue distribution model, restructured in 2021, divides the money from media rights into four main pillars, leading to disputes over fairness and equity within the league.
Clubs Voice Their Concerns
The ‘Interest’ pillar has become particularly contentious. Schalke 04’s supervisory board chairman, Axel Hefer, expressed frustration, stating, “How can it be that clubs receive money for an ‘entertainment product’ on television, even though it hardly entertains anyone?” For the 2024/25 season, Schalke is set to receive almost 1.5 million euros from this pillar, while Hamburger SV is allocated 1.4 million euros, and VfL Wolfsburg and TSG Hoffenheim each get around one million euros.
Opposition to Schalke’s claims has come from Bayer Leverkusen’s managing director, Fernando Carro, who argued that clubs like Schalke and HSV should not be compensated for past mismanagement. He emphasized that consistent performance should be rewarded rather than the size of a club’s fan base or stadium.
Other voices, such as Oke Göttlich, president of FC St. Pauli, have criticized the favoritism shown towards larger clubs. He stated that the current system contradicts the essence of football, suggesting that financial distribution should prioritize sporting merit over financial clout.
Bayern Munich’s CFO, Dr. Michael Diederich, also weighed in, asserting that solidarity must be reciprocal. He highlighted that while Bayern generates significant viewership for the Bundesliga, the club only receives a fraction of the total revenue.
Deciding the Future of Revenue Distribution
The DFL presidium, consisting of nine members, is responsible for making decisions on revenue distribution. While there is no formal voting process among all 36 clubs, a group of eleven, primarily from the second division, has called for an extraordinary general meeting to discuss potential changes. This meeting is set to occur before the DFL’s annual New Year’s gathering in Frankfurt.
Time is of the essence, as the media rights for the next cycle should be awarded by spring 2024. Prolonged disputes, including one with DAZN that delayed critical decisions, have put pressure on clubs to finalize their budgets in anticipation of the upcoming season.
At present, the media revenue distribution favors the Bundesliga over the 2. Bundesliga at an 80:20 ratio, with Bayern Munich receiving the largest share, significantly more than Borussia Dortmund. Additionally, clubs recently relegated from the Bundesliga, like 1. FC Köln and Hertha BSC, continue to benefit financially from their previous status.
The financial disparities in German football extend beyond media rights, with UEFA’s revenue structures further exacerbating the situation. Clubs that participate in European competitions, particularly the Champions League, enjoy substantial financial advantages, leaving many DFL clubs without a share of these lucrative earnings.
With UEFA’s anticipated revenue increases and FIFA’s new Club World Cup set to generate millions for participating clubs, the landscape of German football finance is poised for significant change. As clubs prepare to navigate these complexities, the call for a fairer distribution model continues to echo throughout the league.