The German topflight became the first league to resume football activities after the coronavirus pandemic brought everything to a standstill. With only one game remaining to the end of the season, Bundesliga teams seem to have been ahead of the rest, setting the pace both on and off the pitch.
The Bundesliga became the first team to put ink to paper with a TV broadcaster, ending weeks of anxiety about the outcome of such deals. And while the German topflight teams can rest assured their games will be on the screens for the next four years, they will have to contend with a drop in the value of TV rights.
By becoming the first team to sign a broadcast deal since the corona pandemic, the German topflight sets a benchmark for other competitions and leagues will be carefully watching and analyzing.
Massive Drop in Bundesliga TV rights
The Bundesliga teams might have to cut their costs after their broadcaster, Sky, downscaled their sponsorship package, laying bare the severe economic effects of the novel coronavirus. In the new agreement, Sky, alongside a Dazn, which is a streaming company, will also cover Austria and Switzerland’s top leagues.
The deal, worth £4bn, is a massive drop from the previous agreement that expires this season. The organizers of the league will have to meticulously budget with the relatively unattractive deal, which is €200m short of the expiring deal.
The broadcaster, Sky, will now show all the matches played on Saturday. However, with a total of 200 games to show every Saturday, Sky will cede other match rights to Dazn, a streaming site.
In the new deal, Dazn will have exclusive rights to air 106 games that will be played on Friday and Sunday.
However, one of the emerging online streaming channels, Amazon, failed to make a breakthrough in the German market, with a drop in the level of competition for rights being reported.
What does the fall in Bundesliga TV rights mean to other leagues and sports
Let’s be honest. The corona pandemic was going to cause a severe economic meltdown. And as we experienced earlier, several clubs had to request their players to accept a salary cut. And while that may not have been a popular decision, that was one of the ways clubs were going to minimize expenditure.
With no fans still allowed to grace the stands, it means clubs will have to tighten their belts a bit longer than anticipated. Revenue from match day tickets has been one of the significant income for most clubs. No fans buying tickets means a massive dip in revenue for clubs.
But more than that, even TV rights are expected to be revised downward. Already Formula One has announced a long term deal with Sky, making them their exclusive broadcaster. The details of the deal remain scanty though there are reports the German Motorsport might have settled for a lesser deal than the previous one.
The months ahead don’t look promising, n does the economy. The Bundesliga has set a pattern, and that may just be what will be adopted by most broadcasting partners in the coming days.
