A UEFA report ranked the Bundesliga second behind the EPL "in total revenue" in the '14-15 season, according to Stefan Bienkowski of DW. The report also suggested the league's broadcasting deal is not allowing the German top flight to break away "from its competitors in financial terms." The Bundesliga outdid La Liga, Ligue 1 and Serie A in total revenue "from the likes of gate receipts and sponsorship deals." However, when it came to revenue generated through broadcasting deals over the past year, the Bundesliga "slumped to fourth place, behind England, Italy and Spain." Indeed, among the top 30 clubs in Europe based on total revenue "the Bundesliga had no less than six clubs" -- yet when it came to money made from broadcasting, "there wasn't a single German representative within the top 20." So "why is the Bundesliga's TV deal so poor?" The first problem is simple: England has two pay-TV companies (BT Sport and Sky Sports) "battling for the domestic TV rights for the Premier League." In Spain, Telefonica and beIN Media Group "battle over the privilege to showcase Real Madrid and Barcelona, while Sky Italia and Mediaset go head to head for Italian football."
SUPPLY AND DEMAND: Like any market, demand from two bidders for a product "pushed the price beyond the previous value." Yet the "will of the market" is not the only factor "dictating the difference" between the value England and Germany put on their football. Uli Hesse, author of "Tor!: The Story of German Football," said, "In Germany, football is not considered a part of the entertainment industry but is widely understood as a communal experience. The idea of paying money to watch football (on television) still has not taken root in Germany. You can't force Germans into paying money for football, as they did in England." Contributor to Deloitte's annual Football Money League report and Sports Business Group Dir Austin Houlihan believes that the Bundesliga is "missing out because of this more traditional fan base." Houlihan said, "The pay-TV market in Germany hasn't developed at the same rate as that of the UK, Italy, etc., in part due to the proliferation of free-to-air (or low cost) channels available to the public." According to Houlihan, the Bundesliga already has the core components for a successful league "in place." What is missing is a "lucrative" int'l broadcasting deal. Houlihan: "It's not just from domestic broadcast deals that the likes of the EPL and La Liga are achieving strong growth. Both these leagues have also recently secured substantial uplifts in the value of international broadcast deals" (DW, 11/10).
