Bundesliga Extends Matchday Postponement As Clubs Seek To Avoid $840 Million Losses

At the Ordinary Assembly of the DFL Deutsche Fußball Liga Tuesday, the Bundesliga and 2.Bundesliga clubs unanimously voted to suspend all fixtures—in both leagues, until at least April 30—in light of the COVID-19 pandemic.

DFL chief executive, Christian Seifert, maintained the desire of all clubs to complete the season by June 30 as the 32 clubs seek to avoid losses in excess of $840 million (€750 million).

Broadcasting payments, sponsorship and matchday revenue make up the holy trinity of Bundesliga club incomes—however, with the stadia closed (and likely to be so for some time to come), that immediately wipes out $145 million (€130 million) in gate receipts alone across the top tier.

“We aim to end the season by June 30, and that is still the status today,” Mr Seifert said during an online a press conference.

“We want to see what is possible. If games can take place, it can be assumed that they will necessarily have to take place without spectators, possibly into next season, maybe until the end of the year.” Mr Seifert added.

The DFL has already started discussions with its domestic rights holders, with regards to the final payment of television rights for the 2109/20 season.

Sportsbusiness reports that the DFL is seeking to reach a consensus with Sky Deutschland over the final instalment of this season’s payments, after postponement of the league due to the pandemic outbreak.

A figure of between $369 and $447 million (€330-400 million) is potentially at stake from outstanding media agreements for the final nine Matchdays of the season.

It is an amount that led the DFL to announce Bundesliga clubs will not face a points deduction if they enter bankruptcy proceedings this season.

Also for the 2020/21 campaign the points penalty would be reduced from nine to three points for any clubs who find themselves on the brink of insolvency.

“The aim is to give all of the clubs the time and opportunity to deal with the financial consequences of the coronavirus pandemic and resume regular match operations so that the competitions can be completed on the pitch.” a DFL statement read.

Looking at ways in which the season could be completed, the league laid out plans for an establishment of a ‘Sports Medicine/Special Match Operations Task Force’—the task force is to be headed by Prof. Tim Meyer, medical director of the Institute of Sports and Preventive Medicine at Saarland University.

Any return to competitive football would take place with a minimal workforce in the areas of sports, media and general organisation in the stadiums, but Mr Seifert stressed there was “no one plan yet, there are quite a few different approaches.”

One such approach floated in early March was a tournament style ending to the season in two central locations—something which the Premier League is also reported to be looking at.

Leagues across Europe are all under financial pressures to complete their seasons, as witnessed in France on March 30, when LFP (Ligue de Football Professionnel) clubs learned April’s television broadcasting payments of $164 million (€152 million) would be held back by Canal+ and beIN Sports


.

This, however, doesn’t seem to be an option on the table for Bundesliga clubs presently:

“We are in constant dialogue with our long-standing partner [the DFL], especially with regards to the current situation in the Bundesliga and 2. Bundesliga.

“We are actively discussing constructive solutions, including for license payments and their potential timing.” Sky Deutschland said in a statement.

The DFL announcements come 24 hours before all of Europe’s 55 national football associations will hold a video conference with UEFA.

Where the focus will be just how the current season’s domestic leagues and inter-European cups may be satisfactorily concluded, given the differing states of national paralysis due to the COVID-19 emergency.