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MDLZ - Mondelez International Inc News Story

$62.42 -0.5  -0.7%

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Sector
Consumer Defensives
Size
Large Cap
Market Cap £63.19bn
Enterprise Value £75.81bn
Revenue £19.46bn
Position in Universe 145th / 6938

UPDATE 1-Bundesliga shortlists buyers for partial rights sale, sources say

Wed 12th May, 2021 3:39pm
(Adds details, background)
    By Arno Schuetze and Alexander Hübner
    FRANKFURT, May 12 (Reuters) - Germany's top-flight soccer
league has drawn up a shortlist of buyout funds, including KKR
 KKR.N  and Bridgepoint, to buy a 25% stake in its overseas
broadcasting rights, people close to the matter told Reuters. 
    European private equity firm CVC has also advanced to the
second round of the auction that could value the Bundesliga's
overseas broadcasting rights at roughly 2 billion euros ($2.42
billion), the sources said. 
    The league's soccer clubs will meet on May 19 to vote on the
plans, with a two-thirds majority needed to move to the final
phase. Binding bids would be expected by late June, with a deal
envisaged in July, the sources added.
    The German Football League (DFL), which organises the
country's top two leagues, and the bidders declined to comment. 
    The stake sale, which could be worth up to 500 million
euros, would bring outside investors into one of football's
biggest leagues at a time when they are contending with a plunge
in revenue. 
    Earnings have shrunk because the Bundesliga is having to
stage matches in empty stadiums during the COVID-19 pandemic and
international TV networks are struggling with reduced
advertising revenue from customers. 
    Earlier this year the DFL put a 25% stake up for sale in a
newly created company managing the broadcasting rights outside
Germany for more than the next two decades.
    While a new investor would bring much needed cash to the
table, not all football clubs are in favour of sharing proceeds
during more than two decades with a buyout group, sources close
to the matter said, adding that clubs like Borussia Dortmund
 BVB.DE  have already voiced concerns.
    Elsewhere, in Italy, several clubs derailed a planned sale
of a stake in the Serie A soccer league's broadcasting rights
unit to buyout firms CVC and Advent. urn:newsml:reuters.com:*:nL1N2M81S3
    DFL's overseas broadcasting rights business is expected to
generate revenues of 230 million euros in 2020/21 with sales
projected to grow by about 8% annually to reach 478 million in
the 2029/30 season. Distributable income will rise by 10%
annually from 161 million to 385 million over the same period,
according to people close to the deal.
    The DFL is marketing the unit as a play for private equity
to not only reap their share from the rights, but also to
benefit from commercial partnerships with firms like betting
group Tipico, foods group Mondelez  MDLZ.O  or Amazon Web
Services  AMZN.O .
    The company also sees potential in over-the-top content
(OTT) platforms which stream content directly to consumers like
a "BundesligaPass".
    A virtual Bundesliga, organised jointly with partners such
as video games producer EA  EA.O  or esports group ESL
 MTGb.ST , would come on top of the sales expected from the
media company's business.

 (Editing by David Goodman, William Maclean)
 ((arno.schuetze@thomsonreuters.com; +49 30220133648;))
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