Leo Kirch back in business with the German Bundesliga
Five years ago, Leo Kirch's media empire collapsed. Now he is back: the 80-year-old will market the television rights for the German Football League (DFL) for six years.
Five years ago, Leo Kirch's media empire collapsed. Now he is back: the 80-year-old will market the television rights for the German Football League (DFL) for six years. The subsidiary Sirius of Kirch's agency KF 15 will act as marketer of the rights from the 2009/2010 season, the DFL announced on Tuesday evening according to SDA.
Prior to this, 36 professional clubs had spent hours discussing the deal at an extraordinary general meeting in Frankfurt am Main. The deal was controversial because the bankruptcy of KirchMedia five years ago had plunged the Bundesliga into its worst financial crisis to date.
Under the new agreement, the Bundesliga will receive at least EUR 3 billion from Kirch for domestic marketing over the six years of its term. This will be supplemented by income from the foreign marketing of television rights. According to the DFL, it expects this to generate revenue of 460 billion euros in the period in question.
This would bring total revenue between 2009 and 2015 to 3.46 billion euros. This is significantly more than at present. To provide the clubs with security, Sirius will provide a bank guarantee amounting to 100% of the minimum payment due per season.
Prior to this, 36 professional clubs had spent hours discussing the deal at an extraordinary general meeting in Frankfurt am Main. The deal was controversial because the bankruptcy of KirchMedia five years ago had plunged the Bundesliga into its worst financial crisis to date.
Under the new agreement, the Bundesliga will receive at least EUR 3 billion from Kirch for domestic marketing over the six years of its term. This will be supplemented by income from the foreign marketing of television rights. According to the DFL, it expects this to generate revenue of 460 billion euros in the period in question.
This would bring total revenue between 2009 and 2015 to 3.46 billion euros. This is significantly more than at present. To provide the clubs with security, Sirius will provide a bank guarantee amounting to 100% of the minimum payment due per season.
