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Friday, 3 May 2024

Digital TV Europe: DAZN threatens DFL with legal action amidst media rights dispute

Story from Digital TV Europe:

DAZN has threaten to take legal action against the German football league, the DFL, following its dispute over media rights.

The DFL suspended bidding for the 2025-29 seasons in the country after DAZN filed a complaint to the Germany’s competition watchdog, Federal Cartel Office.

The sport streaming heavyweight claimed the league is unduly favouring rival Sky in the negotiations. The pay TV operator currently holds the rights to package B, seen as the most attractive of the packages on offer.

According to the UK press trade Financial Times, the letter sent from DAZN to the German football body last week said the streamer would take legal action against the DFL over its decision unless a solution could be reached. FT added DAZN has until today (Tuesday April 30) to file a legal claim over the auction.

The DFL kicked off bidding for the Bundesliga in Germany, along with Austria, Switzerland and Luxembourg, for the four seasons from 2025-29 in January.

DAZN claimed the DFL demanded a bank guarantee at short notice in the middle of the tendering process, for request it said was impossible to meet. The German League rejects this statement, saying the terms and conditions were known to all interested parties in the auction.

In a statement, in response to DAZN, the DFL said it carried the tender process in accordance to the Federal Cartel Office’s requirements, in a “transparent and non-discriminatory manner.”

The organisation added, “the competent bodies of the DFL lawfully awarded rights package B to another bidder in accordance with the procedural rules of the tender. The bids submitted by DAZN Limited did not comply with the tender and were therefore not taken into account in the award process. The document subsequently submitted by DAZN from a bank does not change the decision to award the rights to another bidder. There is no basis and no justification for the withdrawal of the decision demanded by DAZN.”

“The DFL has clarified its position in several letters to DAZN and made several offers of dialogue. The ‘lack of reaction from the DFL’ publicly cited by DAZN is incomprehensible.”

“Should DAZN file arbitration action, the DFL is well positioned for such proceedings. In the interests of swift litigation and legal certainty, which is in the interests of all parties, the DFL expects all parties involved to accept an arbitration award as final and conclusive.”

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