Urgent funds supplied by significant backer to the DFB.
The German Football Association has been longing for achievement from their top team for years now, and the absence of success is also beginning to affect them financially. However, there's some good news right before the home European Championships - VW is extending its contract as the general sponsor.
As reported by the German Press Agency, VW will continue their role as the general sponsor of the German Football Association (DFB). Their current contract, which expires this year, will be prolonged, and further details will be revealed during a meeting on Wednesday evening at their Berlin branch. During the same event, national coach Julian Nagelsmann will formally introduce his European Championship squad at the same location in the center of the capital. The agreement hasn't been confirmed by either VW or the DFB yet, and there's still some negotiation happening behind the scenes.
For the DFB, the continuation of their alliance with the key financial backer is a welcome development ahead of the home European Championship. In March, it was announced that they'd switch from longtime supplier Adidas to Nike starting 2027. Though this was met with criticism from certain government quarters, it's expected to boost the DFB's income significantly.
The association decided to sell their old headquarters as one of the measures to generate additional funds. Treasurer Stephan Grunwald stated, "The funds procured through selling the old headquarters give the association the opportunity to use liquid resources to repay the loan for the DFB campus." The new headquarters had cost around 180 million euros, around 30 million euros more than planned. Their financial situation has been impacted by the male national team's disappointing performances at the 2018 and 2022 World Cups, the campus project, and back taxes amounting to over 51 million euros because of the revocation of their non-profit status for the years 2006, 2014, and 2015.
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This VW deal aligns with the recent string of positive economic developments for the DFB. In addition to Nike, the organization has also signed cooperation agreements with Tiktok and Klarna.
VW took over the role of general sponsor from Mercedes-Benz in 2019. The contract was signed in 2017, before the start of the soccer team's downturn, with the failures at the 2018 and 2022 World Cups and the European Championship in 2021. Neither side disclosed any details regarding the terms at the time. It's been rumored that they were exchanging 25 to 30 million euros per year. In the period of the sporting crisis, contract renewal negotiations were ongoing.
The DFB delegation will consist of Völler and managing director Andreas Rettig, who will be attending Wednesday's meeting with VW's top management led by CEO Oliver Blume. After this, DFB President Bernd Neuendorf will travel to Thailand for the FIFA Congress. While there, the DFB hopes to secure the bid to host the Women's World Cup 2027 in partnership with Belgium and the Netherlands. However, Brazil is considered the favorite to host the event.
```mdPhoto credit:
The German Football Association```
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The German Football Association (DFB) appreciates Volkswagen's (VW) decision to extend their contract as the general sponsor, providing much-needed financial support for the national soccer team's preparations for the home European Championships. This sponsoring deal by VW aligns with the recent positive economic developments for the DFB, with the organization also securing cooperation agreements with Tiktok and Klarna.
Source: www.ntv.de
