Will Bundesliga restart be worthwhile commercially? | Business| Economy and finance news from a German perspective | DW | 15.05.2020
Will Bundesliga restart be worthwhile commercially? | Business| Economy and finance news from a German perspective | DW | 15.05.2020: Germany's professional footballers and coaches like Heiko Herrlich may enjoy the return to their jobs, but the prime reason behind reopening the Bundesliga is strictly commercial, says Henning V�pel, director of the Hamburg Institute for the World Economy (HWWI).
"The league's media partnerships have certainly exerted some pressure because the sale of broadcasting and marketing rights are a fundamental part of professional football's business model," he told DW.
Broadcasting and sponsorship deals are normally sealed before the season starts, meaning the league is forced to deliver its product, namely football matches, in order not to be held accountable or run the risk of losing its partners.
"In the end professional football is like a circle of interdependent players in a market based on the selling of and paying for performance," V�pel says.�
'Ghost games' — a haunting experience
Germany's mass-circulation football magazine Kicker�has published a survey this week, estimating the losses incurred by the country's professional clubs from playing in empty stadiums. Based on figures for last season, first-division clubs will lose a total of €67 million ($72.4 million) and those in the second division some €22.02 million.
The impact may be softened to some extent, Kicker reports, because fans may be willing to waive refunding for season tickets that include the last nine games they will be missing. Moreover, the clubs would also save money from paying less VAT tax on the season tickets partly refunded, the magazine wrote.�
Economist Hennig V�pel believes that playing games before empty stands is "better than not playing the games at all," — at least for the 36 clubs in the two top-flight leagues that derive most of their revenues from rights sales.
"The league's media partnerships have certainly exerted some pressure because the sale of broadcasting and marketing rights are a fundamental part of professional football's business model," he told DW.
Broadcasting and sponsorship deals are normally sealed before the season starts, meaning the league is forced to deliver its product, namely football matches, in order not to be held accountable or run the risk of losing its partners.
"In the end professional football is like a circle of interdependent players in a market based on the selling of and paying for performance," V�pel says.�
'Ghost games' — a haunting experience
Germany's mass-circulation football magazine Kicker�has published a survey this week, estimating the losses incurred by the country's professional clubs from playing in empty stadiums. Based on figures for last season, first-division clubs will lose a total of €67 million ($72.4 million) and those in the second division some €22.02 million.
The impact may be softened to some extent, Kicker reports, because fans may be willing to waive refunding for season tickets that include the last nine games they will be missing. Moreover, the clubs would also save money from paying less VAT tax on the season tickets partly refunded, the magazine wrote.�
Economist Hennig V�pel believes that playing games before empty stands is "better than not playing the games at all," — at least for the 36 clubs in the two top-flight leagues that derive most of their revenues from rights sales.