The German football league (DFL) is expecting to receive at least four bids from private equity firms for a minority stake in its overseas media rights, sources familiar with the matter told Reuters on Monday.
DFL Seeks to Boost Revenue from International Markets
The DFL, which organises the top two divisions of German football, Bundesliga and 2. Bundesliga, has been looking for a strategic partner to help it grow its media business in international markets, especially in Asia and the Americas.
The DFL has hired investment bank Lazard to run the sale process, which could value the stake at around 1 billion euros ($1.1 billion), according to the sources.
The DFL hopes to attract more viewers and sponsors from abroad, as well as to compete with other European leagues such as the English Premier League and the Spanish La Liga, which have larger global fan bases and revenues.
The DFL has already secured a record domestic media rights deal worth 4.4 billion euros for the 2021-2025 period, but its international rights are estimated to bring in only around 250 million euros per season.
Potential Bidders Include KKR, CVC and Bain
The sources said that the DFL is expecting to receive at least four non-binding offers from private equity firms by the end of November, and that the bidders include KKR, CVC Capital Partners and Bain Capital.
KKR is a U.S.-based investment firm that has a history of investing in sports and media businesses, such as Formula One, UFC and Axel Springer.
CVC is a Luxembourg-based private equity group that also has a strong track record in sports, having owned stakes in MotoGP, Six Nations Rugby and Premiership Rugby.
Bain is another U.S.-based private equity firm that has been active in the media sector, having invested in companies such as Univision, iHeartMedia and Kantar.
The sources said that other potential bidders could include Advent International, General Atlantic and EQT.
DFL Aims to Finalise Deal by Early 2024
The sources said that the DFL is aiming to select a preferred bidder by the end of this year, and to finalise the deal by early 2024, subject to regulatory approvals and the consent of the 36 clubs that make up the DFL.
The DFL has said that it is looking for a long-term partner that can offer not only capital, but also strategic expertise and access to new markets and technologies.
The DFL has also said that it will retain control over the governance and decision-making of its media business, and that it will not sell more than 25% of its overseas rights.
The DFL declined to comment on the sale process, while the potential bidders did not respond to requests for comment.
