TV trouble for Bundesliga
Monday, April 8, 2002
Article summary
German football's immediate future looks safe after media firm Kirch filed for insolvency.
Article body
The immediate future of German football looks safe for the time being after media company Kirch filed for insolvency for its core business.
Debt problems
KirchMedia, which owned the rights to Bundesliga games until 2004, has struggled to cope with at least €6.5bn of debt. German clubs had feared they would lose a vital source of income, but the German Football League (DFL) has said it can protect clubs in the short term.
Financial reserves
DFL chairman Werner Hackmann said the body, which rules the professional game in Germany, had enough money to support clubs from the top two divisions until the end of the season. "The league has sufficient financial reserves to make sure that we can finish the season without any problems," he said, adding the DFL could count on €40m in savings from security payments made by clubs in recent years.
Thursday meeting
Officials from the country's 36 professionals clubs will address the Kirch crisis at an emergency meeting on Thursday, the DFL said. The 18 first division clubs had expected to receive €286.32m from broadcasting rights this season, representing up to more than 60 per cent of their revenue. Kirch was supposed to make two €100m payments in May and August, money that could be vital for smaller clubs' survival.