DAZN, sports media company, plans to take its dispute over Bundesliga broadcast rights auction with the German Football League (DFL) to court. The league suspended its domestic TV rights tender after DAZN accused it of anticompetitive behavior during the auction.
DAZN’s offer for the largest rights package was rejected, and the company claims it was not given enough time to provide a required bank guarantee. The DFL maintains that all bidding parties were informed of the tender’s terms and conditions.
This development emphasizes how important it is to strike a careful balance in the sports broadcasting industry between maintaining regulatory compliance and creating a competitive marketplace.
DAZN Files Lawsuit
There is going to be intense rivalry when Bild revealed that a bid of €1.6 billion was made for the Bundesliga rights, which was €300 million more than Sky’s offer.
The DFL rejected DAZN’s allegations, which led the sports media business to file a lawsuit, even if there are suspicions that Sky bought package B. As DAZN makes threats to pull out of the bidding, the competition for broadcast rights heats up, emphasizing the drama around German football that is at risk.
DAZN intends to take legal action, possibly involving the European Court of Justice (ECJ), since they are unhappy with the DFL’s inaction on their complaint against the allocation of rights package B. This might take years to resolve.
As a reaction, the DFL declares that it is prepared to arbitrate and asks all parties to recognize the arbitration decision as final to expedite the process and ensure legal clarity.
A legal battle is developing as DAZN is accused of being overdue on its Bundesliga rights payments, which is hurting German football. Amid all of this chaos, the top two division clubs received a hard hit to their revenue from media rights when they received a message from the DFL.
The league revealed that a whopping €80 million in payments for the current rights contract were overdue, with a dramatic drop from €127 million to €47 million for the June 2024 installment. Clubs and fans are on edge while the drama plays out because the future of Bundesliga television rights is in jeopardy.
Cover Photo: IG