Some clubs might certainly think that it should be time to change the way TV revenue is passed onto the 18 different teams in the league. The DFL have created a rather complicated system, which looks to ensure that all teams in the league get a fair share of the money from the current TV deal. Currently there are two sources of income the clubs can count upon. First and foremost, there is the national TV deal which creates the biggest revenue stream by far for the German clubs. Additionally, the sides in the Bundesliga can also count upon money coming from the TV deal the DFL has struck with broadcasters from outside of Germany.
The national TV deal
This system is built on four pillars. Let’s take a closer look at all four of them to find out how the DFL is distributing the TV money.
Five year coefficient
At first, there is a five year coeffecient that ranksthe sides from top to bottom. Each year of those five years is weighted differently. The last season counts the most, whilst the season five years ago counts the least. That means that one stand out season gives a boost in TV revenue the following year, but as that season fades away, so does the TV revenue coming from that season. Doing well over the span of 5 years is hugely important, as this pillar stands for 70% of how the TV money is distributed.
This pillar builds on the performance of a side over the last 20 years. Points are awarded for a given position in the table both in the Bundesliga and the Bundesliga 2. Finishing first one season in the Bundesliga grants a side 91 points, whilst finishing bottom of the Bundesliga 2 sees a side get only one point. All seasons count equally in the sustainability table, meaning that it doesn’t matter if a side finished first last season or ten years earlier. This pillar accounts for 5% of a side’s total TV revenue.
How a side has performed in the league doesn’t matter. Clubs get points for every minute an U23 player spends on the pitch. Foreign players do count if they have joined a youth team in Germany before making it to the Bundesliga. The money is then handed out proportionally by the amount of minutes every side has generated. If you think that this pillar might be key for Germany’s great youth development, you’d be horribly mistaken. Only 2% of the TV money gets handed out that way.
The last 23% of the TV revenue are handed out through this last pillar. This pillar is also dependent on a 5 year coefficient, but this one is calculated in a different manner. The winner of the Bundesliga gets 36 points for finishing first, whilst the side finishing bottom in the Bundesliga gets 1 point. The points for the most recent season are multiplied by five, whilst the points for the season four years ago are multiplied by four and it continues all the way down to the season five years ago being only multiplied by one.
Complicating the matter is the fact that sides in the Bundesliga cannot be rated lower than 24th, whilst sides in the Bundesliga 2 cannot be rated higher than 13th place according to the rules of that pillar.
On top of that the money is distributed for the regions of the table a side finds itself in. The top 6 clubs in the Bundesliga get the same amount of money from that pillar.
The national TV revenue table
With all of those four pillars in place, the national TV revenue table for the current season looks as follow.
1. Bayern München – 67.918 million Euros
2. Borussia Dortmund – 66.584 million Euros
3. Bayer Leverkusen – 65.25 million Euros
4. Borussia Mönchengladbach – 63.22 million Euros
5. TSG Hoffenheim – 61.19 million Euros
6. RB Leipzig – 59.421 million Euros
7. Schalke 04 – 59.195 million Euros
8. Eintracht Frankfurt – 55.982 million Euros
9. Hertha Berlin – 54.044 milion Euros
10. SV Werder Bremen – 52.142 million Euros
11. VfL Wolfsburg – 49.595 million Euros
12. 1. FSV Mainz 05 – 46.389 million Euros
13. FC Augsburg – 43.332 million Euros
14. SC Freiburg 41.47 million Euros
15. 1.FC Köln – 38.564 million Euros
16. Fortuna Düsseldorf – 32.677 million Euros
17. Union Berlin – 29.365 million Euros
18. SC Paderborn – 26.083 million Euros
The international TV deal
This season the DFL hands out a total of 254 million Euros in revenue from its dealing with international broadcasters. Much like the national TV revenue stream, things aren’t straight forward here either. This particular stream of revenue is built on three different pillars.
25% of the revenue is shared equally among the clubs.
This pillar is based on the Uefa five year coefficient. The amount of money handed out is based on the points gained in the Uefa five year coefficient. However, there are no bonus points to be gained from reaching the group phase of a Uefa competition. 50% of the international TV revenue is handed out that way.
Starts in the Europa League and Champions League are awarded with one point per start. This pillar looks at the amount of participation in Uefa competitions over the last 10 years. 25% of the revenue is split up that way.
The international TV money table
Given that participation in Uefa competitions is very highly rated for the amount of money every club receives, it’s not really surprising that there are vast differences in the money table here. Bayern are running away with more revenue than over half of the Bundesliga combined. Given that the Premier League has decided to hand out its money equally from its international TV revenue, one does see why Bayern aren’t necassarily fans of doing things that way in Germany.
1. Bayern München – 45. 066 327 Euros
2. Borussia Dortmund – 32. 417 500 Euros
3. Schalke 04 – 27. 682 398 Euros
4. Bayer Leverkusen – 25. 661 990 Euros
5. VfL Wolfsburg – 17. 643 495 Euros
6. Borussia Mönchengladbach – 14. 802 269 Euros
7. Eintracht Frankfurt – 13. 918 367 Euros
8. RB Leipzig – 11. 729 592 Euros
9. 1. FSV Mainz 05 – 8. 888 393 Euros
10. Hertha BSC – 7. 878 189 Euros
11. TSG Hoffenheim – 7. 787 143 Euros
12. FC Augsburg – 6.825 893 Euros
13. 1. FC Köln – 5.815 689 Euros
14. Werder Bremen – 5.5 million Euros
15. SC Freiburg – 5.5 million Euros
16. Union Berlin – 3.4375 million Euros
17. Fortuna Düsseldorf – 3.4375 million Euros
18. SC Paderborn – 3.4375 million Euros
Total revenue received
Whilst there isn’t a massive difference in the national TV revenue between Bayern and the mid-table sides of the league, the picture is somewhat tilted by the way the interanational TV revenue is handed. If one adds up the revenue received by the all 18 sides in the Bundesliga from both international TV revenue and the national TV deal, the difference becomes telling. One does see why the German magazine 11 Freunde claimed that the Bundesliga has the most unjust system for distributing its TV money among Europe’s biggest leagues.
TV money table(both national and international TV deals included)
1. Bayern München – 113 million Euros
2. Borussia Dortmund – 99 million Euros
3. Bayer Leverkusen – 91 million Euros
4. Schalke – 86 million Euros
5. Borussia Mönchengladbach – 78 million Euros
6. RB Leipzig – 71million Euros
7. Eintracht Frankfurt – 70 million Euros
8. Hoffenheim – 69 million Euros
9. VfL Wolfsburg – 67.2 million Euros
10. Hertha – 62 million Euros
11. Werder Bremen – 57.6 million Euros
12. 1. FSV Mainz 05 – 55.3 million Euros
13. FC Augsburg – 50.2 million Euros
14. SC Freiburg – 47 million Euros
15. 1. FC Köln – 44.4 million Euros
16. Fortuna Düsseldorf – 36.1 million Euros
17. Union Berlin – 32.8 million Euros
18. SC Paderborn – 29.5 million Euros
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