EQT tops Bundesliga media rights bidding at $14bn, trailed by CVC, Blackstone, and Advent

EQT AB is leading the bidding as private equity firms compete for a stake in the media rights business of the Bundesliga, Germany’s main football competition, people with knowledge of the matter said. 

The Nordic investment firm has so far presented the highest offer with an initial proposal valuing the unit at about €12.7bn ($14bn), according to the people. German professional football’s governing body plans to meet early next week to whittle down the list of suitors, the people said. 

CVC Capital Partners is valuing the business at $13.8bn, while Blackstone Inc. has pegged it at $13.1bn, the people said, asking not to be identified because the information is private. Advent International, which doesn’t have an investment in another league or football club, presented a preliminary bid with a valuation of $12.2bn, according to the people.

When DFL Deutsche Fussball Liga GmbH’s supervisory board meets in the coming days, it will consider which suitor is offering the best price while also navigating potential conflicts of interest, the people said. 

David Blitzer, a senior executive at Blackstone, owns a stake in German football team FC Augsburg. CVC has investments in France’s Ligue 1 football league as well as Italy’s Serie A. 

A deal with CVC may require antitrust approval given its investments in other leagues, according to DFL documents seen by Bloomberg News. Blitzer’s stake in a German team could raise the possibility of conflicts of interest when deciding how to divvy up broadcasting proceeds between different clubs, DFL said in the documents.

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Still, the potential conflicts aren’t insurmountable and DFL is considering ways they might be mitigated, the people said. For its part, CVC sees an opportunity to make European football overall more competitive against other sports on the world stage and leverage its experience with the best practices followed by other leagues, one person said.

DFL is seeking bids of up to €1 billion for a stake of as much as 8% in a subsidiary housing the Bundesliga broadcasting rights, Bloomberg News has reported. Deliberations are ongoing, and the private equity firms could revise their bids following further negotiations. 

Spokespeople for Advent, DFL, EQT and CVC declined to comment. A representative for Blackstone didn’t immediately respond to a request for comment. 

Source: BNN Bloomberg

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