BMW in talks to acquire Audi stake in Bayern Munich

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BMW is reportedly engaged in talks for  € 800 million ($897 million) deal to acquire rival luxury car brand Audi’s state in German top division football league Bundesliga.

The deal has been reported by German tabloid Manager Magazin.

The BMW, by virtue of the deal, will become an 8.33% stake holder in Bayern Munich. Currently the Bayern Munich principal ownership retains 75% stake in the club. Another 16.67% shared evenly by financial services giant Allianz and German kit-maker Adidas.

It is mandatory for Bundesliga club principal owners to retain at least 51% stake in the entity.

According to reports Bayern has confirmed the deal with BMW, who will pay € 800 million to buy out Audi’s stake in the club. The deal will also transfer sponsorship rights to BMW  for the period remaining on Audi’s contract that runs till 2025.

The deal is not expected to go through until 2025 at the latest, when Audi’s contract with the German champions expires. However, Bayern are believed to be in talks with Audi to terminate their contract earlier than planned. The carmaker has been a shareholder of the club for the past eight years, sportspromedia.com has reported.

The remaining 75 per cent of shares is owned by club members, in keeping with the Bundesliga’s 50+1 rule whereby clubs must hold a majority of their own voting rights to prevent takeovers by private investors.

As well as becoming a strategic partner of Bayern Munich, BMW will also replace Audi as an official sponsor of the club, injecting more money into the team. Reports say the Bavaria-based brand will double the amount Audi is paying, implying a €40-million-per-year deal.

As part of its own strategic partnership with Bayern, Adidas had signed a 15-year kit deal with the club worth €900 million in 2015. The runs till 2024.

BMW has also reportedly confirmed that it was in talks with Bayern Munich to enter into a ten-year strategic partnership by 2025.

BMW spokesman Mathais Schmidt revealed in a recent statement German manufacturer is currently in talks with the German Soccer giants to become the club’s official automotive partner.

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