Leo Kirch was a
German media entrepreneur who founded the
Kirch Group died he was , 84.
(21 October 1926 – 14 July 2011
[1])
Life
Kirch was born in
Volkach,
Bavaria, but shortly afterward his family moved to the nearby town of
Würzburg. After completing High school he studied
marketing and
management as well as
mathematics at the
University of Munich, graduating in 1952. It was during this time that he gained an interest in
electronic media.
In 1956 he purchased the German rights for the
Italian movie
La strada.
[2] He borrowed money for this venture through an enterprise with a complicated and unclear structure, with ownership distributed amongst himself and various daughters. As his company rose to become one of the most important private media companies in the then
West Germany, the country's second public broadcaster,
ZDF, came to depend on it heavily for films and other programs, partly as a result of companies that appeared to be competing actually being owned by Kirch. This situation remained for many decades, until the launch of commercial television in 1984. Kirch was the owner of the first private channel,
Sat.1 and withdrew his series from ZDF.
[citation needed]
In 1985 he purchased a stake in the leading tabloid
Bild after the death of former owner
Axel Springer. During the 1990s he set up the subscription television service
Premiere and became a key player in sports broadcasting rights, paying massive amounts for the rights to the
German Bundesliga, eventually to the point where even players of moderate ability could earn multi-million
mark salaries. This was consistent with trends happening across much of
Europe at the same time. In addition, in 1996 he purchased the rights to the
2002 and
2006 FIFA World Cups for some
€1.9 billion
[3] and purchased the rights to
Formula One for €1.5 billion.
[4][5]
Even during this decade there were reports of the group being on the edge of insolvency. His large investments in sports broadcasting rights and in pay television were major reasons. In other countries of Europe
pay television could be operated profitably, because there were few freely receivable channels. Many programs also aired on Premiere at the same time that they aired on
terrestrial television. This resulted in an investment of some €3 billion for only 2.4 million subscribers. Combined with the fact that many of the packages were more expensive than similar packages available, the decoder was easy to crack, resulting in large amounts of piracy. In 2002 these difficulties came to a head and
KirchMedia declared itself insolvent on April 8. Kirch himself withdrew itself from the enterprise, but kept up participation in the
Swiss arms on his business, transferring sports broadcasting rights to the subsidiary. The insolvency represents the largest insolvency of an enterprise in German postwar history. The next month Kirch sued
Deutsche Bank for €100m, claiming that they had questioned the status of the group and disclosed confidential business information in the process.
[citation needed]
Kirch and Kohl
Leo Kirch and former
Chancellor of Germany Helmut Kohl were on friendly terms for decades. Kirch was always accused of preferential coverage and advertising. Kohl arranged the creation of commercial television as one of his first official acts as Chancellor in 1982; this allowed Kirch to own a TV station and sports broadcasting rights. During the 1999
CDU contributions scandal, it was revealed that Kirch had donated six million
DM to the CDU during Helmut Kohl's tenure as chancellor. In addition, Kohl, along with various other CDU/CSU politicians, was revealed to be an adviser to the firm during the insolvency process.
[citation needed]
Kirch and Deutsche Bank
Kirch was identified by the
Wall Street Journal to be a target of
Deutsche Bank's spying scandal.
[6] Moreover, according to the
WSJ, the lawfirm that was representing Kirch was the target, and perhaps victim of, an effort to infiltrate a "
mole" into the firm in furtherence of the Bank's spying.
[6]
Death
Kirch suffered from diabetes and a heart condition, and due to these became partially blind. He passed away in
Munich, aged 84.
Family
Kirch had been married since 1956 to Ruth Kirch and had a son, Thomas.
To see more of who died in 2010 click here