Impact of Relegation Matches on TV Revenue for the 2024/25 Bundesliga Season

Impact of Relegation Matches on TV Revenue for the 2024/25 Bundesliga Season

The financial implications of relegation matches in German football are significant, particularly regarding television revenues for the upcoming 2024/25 Bundesliga season. The distribution of these revenues plays a crucial role in the financial stability of clubs involved in both the first and second divisions.

TV Revenue Calculations for the 2024/25 Season

The projected TV revenues for the 2024/25 season are as follows:

| Club | Bundesliga | 2. Bundesliga | |------------------|------------|---------------| | VfL Bochum | 41,990,199 | 21,312,186 | | Düsseldorf | 35,835,663 | 14,181,990 | | TOTAL | 41,990,199 | 21,312,186 |

The total national revenue expected to be distributed to clubs in both divisions amounts to approximately 1.212 billion euros.

Breakdown of National Revenue

According to the DFL, clubs in the 1. and 2. Bundesliga will collectively earn 4.572 billion euros from national revenues during the seasons spanning from 2021/22 to 2024/25. This figure includes earnings from the DACH region (Germany, Austria, Switzerland) and sponsorship income, categorized under "national revenues."

The sponsorship revenue over these seasons is projected as follows:

• 2021/22: 42 million euros
• 2022/23: 50 million euros
• 2023/24: 50 million euros
• 2024/25: 45 million euros

Television Revenue Distribution

For the 2024/25 season, the distribution of TV revenues follows a four-pillar model:

| Pillar | Share | Amount (in million euros) | |---------------|-------|---------------------------| | Equal Distribution | 50% | 606 | | Performance | 43% | 521 | | Youth Development | 4% | 48.48 | | Interest | 3% | 36.36 | | Total | 100% | 1,212 |

Pillar 1: Equal Distribution (50%)

In this pillar, 50% of the revenues will be equally distributed among the clubs. Each team in the Bundesliga can expect around 26.2 million euros, while clubs in the 2. Bundesliga are guaranteed 7.4 million euros. This distribution creates a significant financial impact, especially for teams facing relegation.

Pillar 2: Performance (43%)

The performance pillar is divided into three segments:

• Performance I: Separate 5-Year Ranking (23%)
• Performance II: Joint 5-Year Ranking (19%)
• Performance III: Joint 10-Year Ranking (1%)

The first segment rewards clubs based on their performance over the last five seasons, with a heavier weight given to more recent seasons.

Pillar 3: Youth Development (4%)

This pillar is further divided into two parts, rewarding clubs based on the minutes played by U23 players developed within Germany.

Pillar 4: Interest (3%)

Revenue in this category is distributed based on the interest in clubs, assessed through surveys conducted among the German-speaking population.

International Revenue

For the 2024/25 season, approximately 224 million euros are anticipated in international revenues, which will also be allocated among the clubs. Notably, clubs in the 2. Bundesliga will receive a fixed percentage of these revenues over the next four years, starting with 4% in the initial two seasons and decreasing to 3% for the final two.

The distribution of international revenues will also follow a three-pillar model:

• Equal Distribution (35%)
• 5-Year Ranking (50%)
• 10-Year Ranking (15%)

Due to the lack of international appearances by both VfL Bochum and Düsseldorf, the amounts distributed in the performance pillars will be zero.

In summary, the financial stakes involved in relegation matches cannot be overstated, as they directly influence the TV revenue distributions that are vital for the clubs' operations and future success.