The professional clubs in the Bundesliga and 2nd division have increased their revenues again – but it’s still not enough for a plus.
Appearances are deceptive: Although German professional football has recovered from the effects of the corona pandemic and was able to increase its turnover by 10.5 percent in the past season compared to the previous season to 4.48 billion euros, the bottom line is that the numbers are in the red . Under these circumstances, the controversial entry of an investor seems inevitable for many clubs.
Despite the increase in turnover, the 36 first and second division clubs made a loss of 200 million euros in the past season in view of expenditure of 4.68 billion euros. Among other things, this has to do with the fact that the revenue is still around 325 million euros below the record revenue of 4.8 billion euros achieved in the 2018/19 season.
In addition, the clubs are burdened with liabilities of over two billion euros. This emerges from the “Economic Report 2023”, which the German Football League (DFL) published on Thursday (April 6th, 2023).
Watzke: “Slight recovery”
A sales record was missed, among other things, because there were still restrictions on the admission of spectators last season. Therefore, the income in this area was “only” 402 million euros – compared to 650 million in the 2018/19 season. The somewhat lower proceeds from the sale of German-language media rights (1.1 billion instead of 1.2 billion euros) also play a role.
“In view of the figures available, one can speak of a slight economic recovery, but by no means of an all-clear signal“Said DFL supervisory board boss Hans-Joachim Watzke: “League and clubs will have to find ways together to develop further, to maintain the attractiveness of the competitions and the sporting and economic competitiveness at international level and at the same time to preserve the special features of German football.”
Second division teams with record earnings and high debts
In detail, the Bundesliga clubs turned over a total of 3.61 billion euros. However, since the expenditure amounted to 3.8 billion, the 18 clubs made a total loss of almost 200 million euros. Equity amounts to around 1.6 billion euros. This is offset by liabilities of 1.56 billion euros.
The second division earned 867.8 million euros – setting a record. In view of expenditures of 877 million euros, however, the lower house as a whole was also in the red. Equity has fallen drastically – from 114.6 to 21.6 million euros. At the same time, liabilities rose exorbitantly from 308.8 to 519.1 million euros.
In view of the still tense situation, Watzke warned: “In my view, standing still shouldn’t be an option. Because standing still means going backwards.” This is also why the entry of a so-called private equity-company that is to acquire 15 percent of the shares in a yet to be founded DFL subsidiary for the media rights for 20 to 25 years.
Significantly more employees
“We must now invest in our future. If we do nothing, Spain, France and Italy will lose us,” DFL supervisory board member Rüdiger Fritsch said in kicker: “Initially there were some skeptics.” After some criticism, he now takes one “positive mood” True. A vote on the investor model would require a two-thirds majority (24 of the 36 clubs).
According to the report, the number of people employed “directly and indirectly” in the two top German divisions has risen significantly. The DFL reported an increase of 85 percent from a good 26,000 to a good 48,000 people.