Television broadcasting rights. - The Next Development in the DAZN/DFL Billion Euro Controversy
The long-running dispute between the German Football League (DFL) and internet broadcaster DAZN recently took a legal turn.
DAZN announced it is now taking the matter to the German Institution of Arbitration (DIS), as per the rules mentioned in the DFL's tender documents. The DFL confirmed this move to Deutsche Presse-Agentur. The aim is to settle the disagreement over TV rights for the Bundesliga.
What's the issue here?
The disagreement centers on the first day of the auction and a bank guarantee. The heated controversy escalated after the DFL awarded TV rights package B (Bundesliga's matches on Saturday at 3.30 pm and on Friday evening, along with relegation matches) to pay-TV provider Sky two weeks ago. DAZN claims that the DFL rejected its more attractive offer because they couldn't quickly obtain a bank guarantee. While the DFL asserts that they lawfully awarded the disputed package, DAZN's offers contradicted the tender's guidelines.
Why arbitration now?
The DFL's tender documents offer arbitration in the case of legal disputes, which all bidders, including DAZN, agreed to.
How does the arbitration process work?
Typically, both parties in the dispute choose an impartial and independent arbitrator. These two arbitrators select a presiding arbitrator, who ensures the dispute is resolved through mutual agreement. If this isn't possible, the tribunal decides like a regular court. The resulting decision holds the weight of a final judgment between the parties.
How long do these arbitration proceedings take?
While they're usually quicker than cases before state courts (conducted in one instance), it's likely to take several months. In 2020, the DFL's dispute with Discovery/Eurosport over millions in unpaid fees lasted nearly half a year in total.
What will happen after the ruling?
DAZN previously warned they'd use every legal avenue to resolve their dispute with the DFL. "The legal proceedings might take years, starting with a lawsuit before an arbitration court and potentially moving through several instances before German civil courts, even reaching the European Court of Justice," a company spokesperson said. However, DIS decisions can typically only be contested in regular courts due to formal violation claims.
What's DAZN's potential here?
It's uncertain, but a bank guarantee was specified in tendering documents, as confirmed by several people involved. The DFL could only waive this requirement upon request per previous rules.
What does the DFL think of this?
The DFL has remained tight-lipped, stating that it doesn't want to comment yet. Previously, the DFL made it clear that it hoped all parties would accept an arbitration award as final, intended to bring swift legal and procedural certainty to everyone.
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Source: www.stern.de
