Is it because of Bayern’s dominance? Bundesliga faces millions in losses | OneFootball

The Bundesliga will have to make significant cuts to its TV revenue from the U.S. in the future. According to a report by The Athletic, the DFL will receive about $50 million less than before under the new media rights contract. FC Bayern’s dominance is cited as one of the reasons for this.

The Bundesliga will lose its current U.S. TV partner, ESPN, starting next season. Going forward, games in the United States will be broadcast by the media group Versant—via the USA Network and the ad-supported streaming service Fandango.

However, as U.S. journalist Andrew Marchand reports in The Athletic, the new contract is significantly smaller than the previous one.

The Bundesliga stands to lose around 43 million euros

According to the report, ESPN had been paying around 30 million US dollars per season for the Bundesliga’s broadcast rights. The new five-year contract with Versant is expected to bring in an average of only 20 million US dollars per year.

Over the entire term of the contract, this results in a shortfall of approximately $50 million—or about 43 million euros—compared to the previous agreement.

The Athletic cites the lack of excitement in the Bundesliga title race as one reason for the lower valuation. In particular, FC Bayern’s long-standing dominance has contributed to the league being perceived as less competitive in the U.S. market.

According to the report, another factor is that the Bundesliga currently lacks a high concentration of international superstars. Players like Harry Kane or Michael Olise alone would not be enough to significantly increase the league’s market value in the U.S. Even the frequently praised stadium atmosphere plays only a minor role in negotiations over media rights.

Greater reach despite lower revenues

Photo: imago images

Despite the financial losses, observers also see opportunities in the new model. Unlike in the past, the more than 300 Bundesliga games will in the future be broadcast either on traditional television via USA Network or for free on Fandango.

As a result, the Bundesliga could reach significantly more viewers in the United States in the future. According to The Athletic, Versant’s network reaches up to 80 million households.

The DFL’s hope is that this greater reach will lead to sustained growth in interest in the Bundesliga. If it succeeds in attracting new fans to German soccer, this could have a positive impact on revenue during the next bidding round for U.S. media rights.