Financial Distress in the Bundesliga Circle: DFL and DAZN at Odds Over Delayed Payments

In the Bundesliga, there is financial unrest, as the clubs are facing turbulent times ahead. The delay in TV money could amount to a hefty 80 million euros – a development that stems from an increasingly acrimonious dispute between the German Football League (DFL) and the streaming service DAZN. The conflict, which revolves around delayed payments and a stalled auction process for broadcasting rights, reached its climax over the weekend. DAZN, respected in the industry as a reliable business partner, now finds itself compelled to defend its good reputation against accusations by the DFL. According to a letter from DAZN CEO Shay Segev to the 36 professional clubs, which the press has obtained, the company feels wrongly portrayed and massively discredited by the actions and communication of the league company. This correspondence is just one part of a series of letters exchanged by both contenders in recent days. DAZN vigorously defends against the accusation of having intentionally caused payment difficulties for the first and second division clubs. The DFL's position, especially regarding the currently paused auction for TV broadcasting rights, is also rejected by Segev. Although legal steps have already been taken and a warning has been issued against the management team of the DFL, DAZN plans to pursue arbitration proceedings at the end of April and reserves the right to additional legal actions. The DFL has not yet commented on these incidents. Meanwhile, the league has informed the affected clubs that payments of 80 million euros from the ongoing TV contract will not be made as scheduled, resulting in a reduction of the originally targeted payout rate. The later realization of these revenues is due to shifts in partner payments, with DAZN apparently willing to settle its part by the end of the year. Information on other companies involved is not yet known. This information was communicated to the clubs in the said DFL circular 206, which followed a previous letter with serious allegations against DAZN. At the heart of the dispute is TV rights package B for future seasons, with information indicating that the award went to Sky, but DAZN is also staking a claim. The DFL accuses DAZN of deliberately distorting facts and thus misleading the public. The dispute and the associated legal threats seem to pursue one goal: to sow mistrust in the league association and to suggest that economically sensible offers have been inexplicably rejected – a claim that the DFL says lacks any basis.