By Ben McFadyean.
For weeks, German professional football clubs have been disputing the distribution of TV money with the governing body. After a unanimous decision by the executive committee of the DFL, the governing body of the top two tiers of German football, an agreement that will take into account wider sustainability factors has been agreed.
The DFL announced in a statement on Monday that factors such as TV reach and the number of club members will be considered in the future distribution of media revenue.
Historic clubs in the second tier, including 8-time champions Schalke 04 and 6-time champions Hamburger SV, had pushed for the degree of public interest in the respective clubs to be given greater weight in the deal.
A decision has been made that the club’s current and historical popularity and following will be taken into account in the financial distribution under a category entitled “public interest.”
According to the distribution key, contrary to the hopes of the league’s historic giants, this element will however only account for 3% of the deal’s total revenue.
From summer 2025, the 36 first—and second-division clubs will receive €1.1bn per year from TV marketing.
Currently, media revenues are distributed across four pillars: income distribution (50%), performance (43%), talent development (4%), and the category of public interest, which accounts for 3%.
The announcement confirmed that the ratio of 80:20 between the Bundesliga and the second tier remains unchanged.
A statement from the DFL, the governing body of the top two tiers, stated: “The current distribution key has proven itself in international comparison; it provides incentives for sporting performance and growth, and at the same time follows the principle of solidarity in a league of 36 clubs.”
Borussia Dortmund’s managing director Hans-Joachim Watzke, as spokesman for the DFL executive committee speaking to the Frankfurter Allgemeine Zeitung, endorsed the deal and spoke of a “good development in what is a proven concept of distribution.”
A similar deal in England would benefit the long-term viability of the game.
In contrast, the popularity of the following is not taken into account in the deal negotiated by the Premier League. TV Monies are distributed to its member clubs in the following way: 50% is split equally across the 20 clubs in the top tier. 25% is based on the number of television appearances with a stipulated minimum amount (called facility fees), and 25% is based on where that club finishes in the league (called merit payment).
The overseas broadcasting monies from broadcasters outside the UK are distributed equally amongst the clubs.
The TV rights package for the second tier in England, the EFL Championship, currently consists of guaranteed payments of £895m (€1.3 billion) and £40m (€58.5m) in marketing rights. This deal runs until the end of the 2028/29 season.
In England the TV rights deal that benefits the second tier has a further income split among the third, and fourth tiers.
In contrast to the Bundesliga and 2. Bundesliga deal, in Germany the leagues beneath the second tier have a separate deal.
The deal with Sky TV and ESPN represents a 50% increase on the agreement that ended last season and means a 46% increase in media income for England’s second-tier clubs.
Despite the improved TV deal, there have been ongoing concerns about media income distribution in England’s second tier. In 2020, 15 clubs, including historical clubs like Leeds United, Aston Villa, and Derby County, threatened to form a breakaway league.
There have also been historical differences in the so-called “parachute payments,” which see clubs relegated from the Premier League receive a percentage of the equally shared element of broadcasting rights each Premier League club receives—many clubs in the second tier regard this as giving an unfair advantage in the promotion push.
Wigan Athletic, Portsmouth FC, Derby County, Bolton Wanderers, and Coventry City are among the historic clubs that have won major titles and have large follower bases that have gone into administration in the second tier of English football in the past decade.
An additional 3% of media rights income being allocated to clubs with a high level of popularity and historic attainment in a category “public interest” similar to that in the German game would benefit the long-term viability of clubs that have made sustained contributions to the game in England.
Among the current second-tier clubs, Leeds United, Sunderland, West Bromwich Albion, Blackburn Rovers, Portsmouth, and Derby County have all won the first-tier title and have substantial fan bases.
Sheffield Wednesday (3.7m), Sheffield United (3.05m), and Middlesbrough (2.085m) are among the second-tier clubs with the biggest fan bases that would also benefit if a similar category allocating TV money were to be applied in England.
An additional payment for attainment would also be in the interest of all clubs that have successfully and innovatively approached developing strong follower bases, including Southampton FC and Watford, which have 2.5m followers on Instagram alone.
The proposed introduction of a football regulator in the English game is currently going through the upper chamber of parliament, the House of Lords. When the introduction has been achieved the workload will be substantial.
The history and popularity of clubs ought to be one factor considered in the long term to ensure English clubs, including those that have made historic contributions and have large fan bases in lower leagues, are viable for future generations.
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