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SpoBiS Summit: German Football Federation To Test Open Market Before Adidas Deal Expires

The German Football Federation (DFB) will test the open market before its kit deal with adidas expires at the end of the 2018 FIFA World Cup in Russia. Speaking at SpoBiS in Dusseldorf, Germany, DFB President Wolfgang Niersbach said it is the federation’s obligation, with respect to its members and statutes, to look for the best possible deal, despite its long-standing partnership with adidas. While its long history with the DFB does not guarantee an automatic renewal, it provides adidas with priority in future negotiations. “I think I don’t have to tell anyone in here what kind of partnership this is between the DFB and adidas for the last several decades. So it’s just natural that we will talk to this long-term partner first,” he said. Niersbach’s words will make waves at the headquarters of other sportswear companies, as they suggest that brands such as Nike and Puma have a real chance to become the next kit supplier of the defending World Cup winners. The DFB’s current deal with adidas has a reported value of €28M ($32M) per year. This number puts Germany in the top three, behind France (Nike/$48M) and England (Nike/$38M). Overall, the DFB’s 12 partners reportedly pay €60M ($68M) annually to be associated with the federation. The federation's sponsorship revenue has quadrupled since ’02. In comparison to other federations, however, the DFB still has room for growth. The Brazilian Football Federation (CBF), for example, reportedly earns €100M ($114M) from sponsorships. Niersbach said he does not concern himself with the finances of other federations. “We and I think the German Golf Association are the only two [German sports] federations that don’t receive federal financial support. We are proud of that,” he said. Niersbach said that the DFB is financially self-sufficient. The DFB is able to finance its annual budget, which currently is around €210M-€211M ($240M-$241M), completely through income from TV, sponsorships, national team games and its share of the Bundseliga revenue. Niersbach also pointed out that no other domestic Cup competition is better marketed than the one in Germany. He said, “We are even making more money than the English FA Cup.”

LOOKING AHEAD: With the federation’s finances in a healthy state, the DFB has set its sights on hosting Euro 2024. Niersbach said that he feels very confident about Germany’s chances to be awarded the tournament. The DFB has already laid some groundwork by making its intentions known early on and withdrawing its bid to host the final stages of Euro 2020 in favor of England, which could have been an opponent for the event four years later. Niersbach puts the DFB’s chances of hosting Euro 2024 at 80%. Turkey is so far the only other country that announced interest in hosting the event, but it has not yet officially thrown its hat in the ring. There has been some criticism about the DFB’s decision to publicize its intentions so early, but Niersbach rejected those and compared it to when the DFB decided to bid for the 2006 FIFA World Cup. “We made the decision to bid for the 2006 World Cup in November 1992,” he said. “The result was the whole world knew Germany will bid for the 2006 event. It’s the same this time around.”

PERSONAL OUTLOOK: Niersbach, who’s vying for a seat on FIFA’s ExCo, said he has no interest in running for the top position at UEFA or FIFA. However, he could imagine another two years in charge of the DFB given he stays healthy. The topic of introducing term limits at FIFA was also discussed, with the 64-year-old saying, “We support the idea put forward by UEFA to adopt the regulation of the IOC, which has a two-term limit including an option for a third term.”

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