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December 1, 2008
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DFL Signs Four-Year Deal With Premiere For Bundesliga Rights

Premiere Will Be The Exclusive TV
Provider For Bundesliga Soccer
German cable operator Premiere "has secured the top Bundesliga soccer rights for the next four seasons" as part of a deal that will see the DFL, Germany's national governing body for soccer, bring in a total of $534M (all figures U.S.) per season, according to Scott Roxborough of the HOLLYWOOD REPORTER. Premiere will have the "exclusive pay TV rights for all Bundesliga games with German public broadcasters ARD and ZDF airing match highlights." Premiere currently pays around $255M per season for Bundesliga rights, but the new deal will see the fees jump to around $287M for the '09-10 season and increase to around $350M for the 2012-13 season. There had been "speculation that News Corp., which controls 25% of Premiere and ESPN-parent Disney were also circling the Bundesliga rights" (HOLLYWOODREPORTER.com, 11/28). DAILY VARIETY's Erik Kirschbaum reported the total package is "just slightly above" the $530M the DFL got for the current season that ends in June. ARD will show the first highlights at 6:30pm local time, which is about 75 minutes after Saturday matches end, while ZDF and sports net DSF "also got rights to show some highlights at less attractive hours." The majority of Bundesliga matches begin at 3:30 local time on Saturdays, and Premiere "has long tried in vain to prevent any free TV highlight broadcasts" before 8:00pm. But the net "got a concession from the league, which will introduce a new 6:30 p.m. match that, in theory, will compete with ARD's popular 6:30 p.m. highlights show" (VARIETY.com, 11/28). 

IMPORTANT DEAL FOR PREMIERE: The FINANCIAL TIMES' Gerrit Wiesmann reported Premiere signing the deal is a "vital but costly move for a franchise hammered since losing the rights at the last auction in late 2005." The company "admitted it was paying more per season than any previous rights holder ... but also said it would be able to show more live football" (FINANCIAL TIMES, 11/29). The WALL STREET JOURNAL's Archibald Preuschat writes the deal "was crucial to Premiere and for majority shareholder News Corp." News Corp. has a "track record of using soccer to turn around unprofitable pay-TV companies in Europe, notably Sky Italia and the U.K.'s British Sky Broadcasting Group" (WALL STREET JOURNAL, 12/1). 

RARE SETBACK FOR ESPN: REUTERS' Huebner & Prodhan reported that ESPN is "looking for new international rights and would have won its first live German sports rights contract with a Bundesliga deal." The net has indicated growing its international business "is a core priority." An ESPN spokesperson: "We were active participants in the process, so were disappointed at the outcome." The spokesperson added that the net "would continue to look for opportunities in Germany and more widely in Europe, but declined to comment on whether it would seek a deal with Premiere, or to be more specific about other possibilities." Huebner & Prodhan noted ESPN has two channels in Germany, but neither "shows live European sports" (REUTERS, 11/28).

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