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Is the Bundesliga still a 'big league'?

February 3, 2023

In the winter transfer window, Bundesliga clubs were as conservative as usual — in contrast to their Premier League counterparts. German football can't compete financially, but it has plenty of other things to offer.

Borussia Dortmund vs Bayern Munich
Germany's top clubs Bayern and Dortmund have not spent large sums this winterImage: Anke Waelischmiller/Sven Simon/picture alliance

Marcel Sabitzer moved to Manchester United on loan from Bayern Munich at the last minute. German international Philipp Max returned from the Netherlands to join Eintracht Frankfurt. And the Isco transfer to Union Berlin, supposedly the "hottest winter deal in the Bundesliga," fell through on the home stretch.

There is no question that the winter transfer window which just ended saw its fair share of movement in the Bundesliga. The so-called "Deadline Day" was even uncharacteristically turbulent in parts. However, the price tags on the deals made by the 18 Bundesliga clubs were significantly lower than in other leagues. 

It's no secret that Premier League clubs in particular tend to spend much more money than others. In this window it was £815 million (€922m / $998m) to be precise, twice as much as in the record-breaking winter of 2018.

Chelsea stood out in particular, investing €121 million ($132 million) on the last day alone, when they signed Argentine World Cup winner Enzo Fernandez from Benfica.

No comparison with England

"Comparisons with England are only valid up to a certain point," says Stefan Ludwig, head of the Sports Business Group at Deloitte, in interview with DW. Deloitte has been publishing the Annual Football Money League, a ranking of the world's top 20 football clubs by revenue, since 1998. 

"Our expectations for the 2022/2023 season are that the Premier League will generate over €7 billion ($7.6bn) in revenue, spread across 20 clubs while the Bundesliga with its 18 clubs will generate €3.6 billion ($3.9bn). So it's hard to claim you're still competitive."

To clarify: The most expensive transfers in the Bundesliga this winter were Josip Juranovic's €8.5 million ($9.3m) move from Celtic to Union Berlin and Julien Duranville's move from Anderlecht to Borussia Dortmund, also for €8.5m.

Both are players that the casual football fan would probably have to Google first. Juranovic, who finished third with Croatia at the World Cup in Qatar, and the top Belgian talent Duranville act as proof that the Bundesliga is no longer as financially competitive as it once was. 

Only Bayern can keep up

"In the past, we had years when five German clubs were in the top 20 in terms of revenue. We are a long way away from that at the moment," admits Ludwig. Instead, the Football Money League is dominated by the Premier League, who boast 11 out of 20 clubs on the list.

Nevertheless, Ludwig says "the English league won't be able to dominate all European competition in the future, because it too only has four Champions League spots, and correspondingly more places for the Europa League and the UEFA Conference League."

Despite them having no majority investor backing and receiving significantly less TV money, only Bayern Munich come close to matching their English counterparts spending power. Even without their transfer income, the perennial German champions rank sixth in the Deloitte rankings with a turnover of over €650 million ($711 million), aided by regular forays into the latter stages of the Champions League.

In addition, Bayern's exceptional position in Germany enables it to conclude better sponsorship deals than other Bundesliga clubs. This financial advantage has played its part in no other team lifting the Meisterschale since 2013.

Bayern are financially unrivaled in Germany and the only Bundesliga club capable of competing with Europe's eliteImage: Soeren Stache/dpa/picture alliance

Bundesliga still a 'first-class product'

While some fans complain of boredom, player agent Jörg Neblung sees things differently: "I don't think the Bundesliga is boring because of Bayern's dominance," he tells DW. "We're seeing amazing things right now in Freiburg and in Berlin. I'm not bored by this league at all." 

While Neblung concedes that the Bundesliga won't be able to catch up with the Premier League in the long run, he highlights other strengths it boasts. "We still have a first-class product," he says. "I think we would do well not to always strive for the utmost possible, but also to appreciate what we have. In the past, both the clubs and the league have performed very respectably, so our league is a healthy one."

However, Neblung said the potential for growth in European football is limited: "We can't squeeze the product any further by adding fixtures or introducing a second Conference League. It's true that money from the Arab world is now being flushed into football once again, which then benefits the smaller clubs via England or other countries. But we have reached a certain limit." 

Talent training as a niche

The Bundesliga must therefore look for opportunities in a niche that it has already successfully occupied for years: training young talent, including from abroad, some of whom come to Germany as youngsters. 

"It is, of course, an argument for young players in particular that they find a professional environment with appropriate structures and experienced coaches in the youth development centers, in which they can develop further," says Ludwig.

Ludwig also warns that the German clubs' lead in this field could melt away: "Clubs from other leagues are now following suit because they have realized that you have to tie down the talent earlier."

Once such a talent has been trained up, clubs generally want him to play as successfully as possible for as long as possible at the club in question, or — when the time for a transfer has come — be sold on for maximum profit.

The fact that the preferred buyer is often a club in the Premier League is no longer a new trend, even for player agent Neblung. "The German clubs naturally try to achieve the best possible price. And this market is England," he confirms.

"And the player himself, of course, also has an interest in going to England, because that's the best league in the world at the moment and that's where the most money is earned."

This article was translated from German 

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