What’s behind Blackstone’s exit as a possible strategic partner of the German Football League? On Tuesday there was also speculation in the media about the ongoing fan protests as a reason. However, the DFL did not specifically address this in its letter to the clubs.
The fans are mobilizing against investors with chocolate thalers. IMAGO/Team 2
“Despite positive discussions, critical points accumulated during the detailed due diligence phase at Blackstone, including restrictive governance, economic aspects and other details,” wrote the two DFL managing directors, Dr. Marc Lenz and Dr. Steffen Merkel, the 36 shareholders of the Bundesliga and 2nd league.
Translated, this “business German” means that in the current review phase, in which interested parties Blackstone and CVC are allowed to look into the DFL’s books, doubts may have arisen about the structure of the business and the entire partnership itself.
FC Bayern’s construction sites and a ray of hope (with Thomas Helmer)
Tuchel, Sané, Eberl – the construction sites at FC Bayern are big. After the defeat in the Champions League round of 16 at Lazio Rome, Bayern are in crisis mode. Ex-Bayern professional Thomas Helmer sheds light on the many problems and names a ray of hope.
8 hours 15:15 minutes ago
However, the league letter does not specifically address the fan protests or the recently emerging debate about a possible new vote due to the controversy surrounding Hannover 96 managing director Martin Kind’s vote. Business news service Bloomberg, which first reported the Blackstone exit, wrote: “The private equity firm is concerned about how long it might take to get a deal done, amid reports that some clubs are considering a re-vote “Due to structural and economic factors, it is difficult for Blackstone to see how a deal could be achieved,” it said.
In fact, a sense of low transaction security due to the lack of unity across clubs is what is heard as industry noise. Since there are now debates about a new vote, there were considerable doubts about the quality of the possible cooperation.
The non-mention of these backgrounds in the DFL letter may also be of a tactical nature. On the other hand, Blackstone is considered to be much more active in management in the industry than, for example, the last remaining bidder, CVC. Blackstone was aware of the so-called “red lines” and the design of the licensing model, in which an investor only has minorities on advisory boards and would only have access to management if targets were missed. Another bidder, EQT, had already been eliminated due to the limited opportunities for co-determination.