German FA and Bundesliga have announced the TV money distribution in German football for the next four seasons. A massive €4.4 billion is expected in TV money revenue over the next four years (2021 to 2024) with Bundesliga signing lucrative domestic tv deals. This money will be distributed among clubs in German top flight (Bundesliga) and Bundesliga 2 on yearly basis according to 4 pillars of distribution which we will be taking a look at in this article.
Bundesliga TV Money Distribution System:
Content Summary
German FA and Bundesliga authorities have produced an equal distribution method for domestic TV rights money mirroring what Premier League do in England. The total TV money of €4.4 billion over the next 4 seasons will be divided into 4 parts. one part for every year from 2020-21 to 2023-24 season will be distributed according to following system.
DFL calculates €4.4 billion in expected TV money which will be distributed among clubs in German top flight according to newly formulated system.
- Season 2021/22: €1,073 Billion
- Season 2022/23: €1,109 Billion
- Season 2023/24: €1,176 Billion
- Season 2024/25: €1,208 Billion
So basically every season in the 4 year cycle gets slightly more than the previous one. The yearly TV money pot is than distributed among clubs in German top two leagues according to newly devised system called “4-pillar principle”
Distribution According To 4-Pillar Principle:
So for example in 2020-21 season €1.073 billion euros will be available to distributed among clubs in German top league (Bundesliga). From that €1.073 billion 53% will be distributed equally among teams in Bundesliga which guarantees every team 24.7 million euros, 43% according to recent league historic table (performance based), 3% according to young talent pool and popularity of clubs in Germany.
Pillar 1: Equal Distribution 53% = €569 million
Pillar 2: Performance 42% = €450.9 million
Pillar 3: Young talent 3% = €32.2 million
Pillar 4: Interest 2% = €21.4 million
Pillar 1: Equal Distribution
53% of €1.073 billion will be distributed among 18 Bundesliga clubs equally. That is €569 million in total which means €24.7 million guarantee payment to every club in Bundesliga.
Pillar 2: Performance Based distribution:
Performance pillar is divided into three parts,
A). last 5 year league performance: Last 5 league season finishes are taken into account on the basis of 5:4:3:2:1 importance factor with latest season being 5. 24% of the available funds in Performance related pool will be distributed according to this facto.
B). Joint 5 year performance: last 5 year peformance is taken into account but without giving any season importance. 17% of the available funds are distributed according to his formula.
C). 10 year valuation of clubs: 1% will be awarded to teams according to last 10 year performance bases table.
Pillar 3: Young Talent
4% of 1.073 billion will be distributed among clubs according to their u23 teams league standings over the last three year average finish.
Pillar 4: Interest
3% of the total yearly tv money will be distributed among clubs according to market share which will be calculated via Allensbach Market (Advertising Media Analysis).
International TV Money Distribution:
DFB also signed massive international TV deals for Bundesliga season from 2020 to 2024 season. A total of €180 million euro a year will be distributed among 18 clubs in Bundesliga from 2021 to 2024 according to same formula as domestic rights.
Following table shows how much money German top flight clubs can make in 2020-21 season according to new distribution system.
| CLUB | EQUAL SHARE | PERFORMANCE | YOUNG TALENT | INTEREST | INTERNATIONAL | TOTAL |
|---|---|---|---|---|---|---|
| Bayern Munich | €24.7m | €20m | €3.3m | €4m | €18m | €72m |
| Borussia Dortmund | €24.7m | €19m | €3m | €3.8m | €17m | €67.5m |
| RB Leipzig | €24.7m | €18m | €2.5m | €2.8m | €17m | €65m |
| Bayer Leverkusen | €24.7m | €17m | €3.2m | €3m | €15m | €63m |
| Borussia M'gladbach | €24.7m | €16m | €2.5m | €2.2m | €14m | €59.4m |
| Wolfsburg | €24.7m | €15m | €2.4m | €2.5m | €13m | €56.9m |
| FC Schalke | €24.7m | €14m | €2.7m | €2.6m | €13m | €56m |
| E. Frankfurt | €24.7m | €13m | €1.6m | €2m | €12m | €53m |
| Hertha | €24.7m | €12m | €1.5m | €1.6m | €11m | €49.9m |
| Werder Bremen | €24.7m | €11m | €2.3m | €2.4m | €10m | €50.1 |
| Stuttgart | €24.7m | €10m | €1.6m | €1.8m | €9m | €47m |
| Union Berlin | €24.7m | €9m | €1.6m | €1.4m | €8m | €44.7 |
| FC Koln | €24.7m | €8m | €1.6m | €1.4m | €7m | €42.7 |
| Hoffenheim | €24.7m | €7m | €1.7m | €1.6m | €5m | €40m |
| FC Mainz | €24.7m | €6m | €1.6m | €1.4m | €5m | €38.7 |
| Augsburg | €24.7m | €5m | €1.6m | €1.6m | €5m | €37.9 |
| Freiburg | €24.7m | €4m | €1.6m | €2m | €5m | €37.3m |
| Arminia | €24.7m | €3m | €1.6m | €1.3m | €5m | €35.6m |