Bundesliga pulls out of private equity acquisition of media, sponsorship rights after continued fan protests

The German Football League (DFL), which organizes the Bundesliga and 2.Bundesliga, has announced it will not be going forward with a private equity deal that has caused rampant fan protests over the last few weeks.

Per ESPN, the DFL’s board unanimously decided on Wednesday to pull out of the deal. Fans have protested by showering the pitch with various items during nearly every match over the last several weeks.

“A successful continuation of the process looks impossible given the current developments,” DFL board spokesperson Hans-Joachim Watzke said in a statement.

“Even if the large majority is in favour of a strategic partnership. That is why the board unanimously decided … not to continue the process and not to conclude it.”

Last May, the Bundesliga was unable to win approval for the private equity deal, with just 20 of 36 clubs voting in favor. A two-thirds majority of 24 clubs was needed. In December, that two-thirds majority was hit and fans revolted.

The proposed deal would have allowed private equity firm CVC Capital Partners to pay the DFL between €900 million and €1 billion for 8% of the DFL’s sponsorship and broadcast rights for 20 years.

Part of the reason that fans were so livid was because of Hannover 96 CEO Martin Kind. Per Deutsche Welle, Kind was instructed by his parent club to vote against the deal, but reportedly voted in favor of it, tipping the balance towards the deal’s approval. Kind’s alleged vote was looked at as an attempt to bypass the 50+1 rule.

The 50+1 rule stipulates a club’s members must control 50% plus one vote of a team, minimizing the possible impact of a single investor.

Had the DFL continued with the CVC deal, a motion from FC Cologne would have proposed a final vote for the deal would be open and not anonymous in order “to ensure adherence to the 50+1 rule and give any deal the necessary legitimacy.” With the DFL pulling out, Cologne’s measure won’t be necessary, and the DFL will have to go back to the drawing board.

[ESPN]