Bundesliga teams need to fill a €80 million deficiency.
The DFL is experiencing financial hardship. They will provide less funds to Bundesliga teams than initially planned in June. It is estimated that around 80 million euros will be missing at the close of the recent season, which also serves as the business year for many clubs. This deficit is causing difficulties for some teams, like VfL Bochum, who narrowly managed to avoid relegation. Meanwhile, HSV is showing relief.
Bundesliga clubs are grappling with a financial dilemma. The DFL will transfer significantly less cash in June than planned initially. Approximately 80 million euros are absent at the conclusion of the season that recently ended, which is also the fiscal year for numerous teams. Since the awaited compensation has been postponed until December, the already-struggling clubs face challenges.
At the end of April, the DFL released a letter that worried numerous teams. "The anticipated revenue for June 2024 has been lowered from 127 million euros to 47 million euros," stated the letter, which can be accessed by the German Press Agency. The anticipated revenues for the existing season will be reduced from 1.179 billion euros to 1.099 billion euros collectively.
The startling news has varied repercussions in the diverse club sector of the 1st and 2nd Bundesliga.
Each team is now lacking roughly seven percent of the allocated budget. "That's a challenge for us," opined Ilja Kaenzig, director at VfL Bochum. The recently-saved Bundesliga club that narrowly escaped the drop will have an extra 2.5 million euros less in June. "We can't supplement that, so we'll have to save."
At HSV, the deficit is around 1.2 million euros. Although the CFO, Eric Huwer, attests, "It doesn't disturb us much; we acknowledge it," he previously acknowledged that a sudden reduction in income could have caused issues for the club.
Both first- and second-tier clubs may face hurdles. Loans or the sale of season tickets could be insufficient options for clubs with financial issues or greater reliance on media earnings. Not all teams have the reserves of a club like FC Bayern Munich, who expect a 6.3 million-euro reduction in revenue.
Second-league relegated VfL Osnabrück has the means to cope with the deficit. "It's not a significant issue for us," asserted managing director Michael Welling. However, he only mentioned "the missed interest payments" of approximately half a million euros.
The funds will distribute among the clubs later, according to the DFL. "The partners' payments could not be made in accordance with the contracted due dates, so agreements for later payments had to be made with the affected parties." The majority of the missing earnings, worth roughly 50 million euros, must be paid by the sports streaming service DAZN, involved in a legal dispute with the DFL regarding TV rights. It remains unclear whether there are more parties involved among the debtors.
DAZN has delayed payments since March and April. The DFL and its presidium initially provided funding through "a short-term loan between the DFL and DAZN," specified the document signed by managing directors Steffen Merkel, Marc Lenz, and financial director Jörg Degenhart. "However, a reduction in payouts in June 2024 is now unavoidable."
The motivation behind the DFL delaying the loan until December remains unaddressed. The media firm replied to the clubs, "It was also surprising for DAZN that the financing for the clubs reportedly was not deemed sufficient by the DFL."
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Bundesliga clubs are seeking alternative sources of income due to the reduced funding from the DFL. Despite the financial challenges, Bundesliga 2 team VfL Osnabrück is confident they can cope with the deficiency.
The shortfall in funds has led to the postponement of partner payments by the DFL to several clubs, including those from Bundesliga 2 like VfL Osnabrück. This change in financial circumstances necessitates clubs to reconsider their budgeting strategies.
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