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Streaming service DAZN feels disadvantaged in the auction for the largest TV package and is calling for further auctions and awards of other packages to be suspended.
There is gigantic anger surrounding the tender for the national media rights of the German Football League (DFL). The auction started on Monday. The billion-dollar poker game is scheduled to be completed at the end of April. It’s about the gold of German football, more than a billion euros per season until 2029. Applicant DAZN has sent the DFL around the two managing directors Steffen Merkel and Marc Lenz a letter of complaint through the renowned Frankfurt law firm Gleiss Lutz has.
DAZN writes to the DFL Presidium
The streaming service sent the email to all DFL executive committee members, led by Hans-Joachim Watzke. The Dortmund club boss, who had been enthusiastic the evening before, and his executive committee colleagues Axel Hellmann (Eintracht Frankfurt), Oliver Leki, Steffen Schneekloth, Jan-Christian Dreesen, Oke Göttlich and Holger Schwiewagner were startled. The auction was stopped on Wednesday evening in order, according to the DFL, to “protect the process”.
It’s about the most valuable package in the auction, the so-called package B with 196 live games on Saturday afternoon, the game on Friday evening and the relegation. DAZN accuses the DFL of “failing to take into account” what DAZN believes to be a “financially superior offer … violates German and European antitrust law.” The streaming service therefore also sent the letter of complaint to the Federal Cartel Office.
Joy follows anger: Hans-Joachim Watzke, BVB boss and DFL executive committee spokesman. © AFP
DFL demands more than Dazn offers as a guarantee
According to DAZN, the DFL had demanded a “very specific bank guarantee” for the streaming service offer within 24 hours after the “hard letter of comfort” presented by DAZN, according to its self-disclosure, had not been accepted. DAZN said it followed up on this and provided a guarantee from Acces Industries, a global investment firm. This was rejected by the DFL.
The DAZN letter now states: “The demand for disproportionate financial assurances and the rejection of proof of solvency, which would have fully corresponded to the legitimate interests of DFL GmbH, is an abuse of the dominant market position of DFL GmbH on the market for Football broadcasting rights in Germany and represents a decision by a business association that restricts competition.”
DAZN feels discriminated against by the DFL
Then it gets even sharper in the letter from the law firm: “Our client also has reasonable suspicion that DFL GmbH is discriminating between different bidders.” This is “illegal behavior by the DFL.” DAZN demands that “further auctions and awards of other packages be suspended until DFL GmbH has awarded package B in a way that is beyond doubt lawful.” The DFL “clearly rejected” the allegations on Wednesday evening.