By Roberto Lamprecht
Hertha is not only up to its neck in sport, but also financially! That shows the latest group report for the half-year from July 1, 2022 to December 31, 2022. Horror numbers that scare every Hertha fan.
The report makes it clear how important it would be for Hertha to conclude a deal with potential investor 777 Partners. The Americans are negotiating with Hertha about an investment of 100 million euros by 2026. The time until March 15 to submit the license documents to the DFL is slowly running out.
The financial report (source: herthabsc.com):
► The first half of the 2022/23 financial year shows a loss of 44.6 million. A deficit of 19.3 million is forecast for the second half (01/01/2023 to 06/30/2023). Estimated net loss for the year: EUR 64 million!
Possible millions in severance payments to Fredi Bobic (51) and Rune Jarstein (38), who were terminated without notice – both have filed a lawsuit against Hertha – are not yet included.
A reason for the shortfall: In the first half of the new financial year there were fewer transfer proceeds (15.8 million) than in the previous year (40.1 million). TV money and advertising revenue also fell.
Personnel costs have also increased by five million, totaling 51.3 million from July 1, 2022 to the end of last year!
The athletic function team was increased from 25 to 35 men. At the same time, since the beginning of the term of office of the new President Kay Bernstein (42), the number of administrative staff has increased from 119 to 155.
► Hertha has negative equity: 15 million!
On June 30, 2022, equity was still EUR 29.5 million, compared to EUR 107 million a year earlier. In total, the outgoing investor Lars Windhorst (45) had invested a total of 374 million euros in equity since 2019. All gone!
► Liabilities: 90.8 million (previous year: 80.8 million)!
88.5 million are short-term liabilities that must be settled by the end of 2023.
These include the 40 million bond (Nordic bonds) and liabilities to banks (29.55 million/previous year: 1 million) as well as liabilities from trading (6 million), player transfers (2.6 million) and other (10.3 million). In addition, there are annual rental costs of 8.5 million (including for the Olympic Stadium).
In plain language: Hertha has to pay a total of 97 million by the end of the year. The bank credit line (35 million) is almost completely exhausted.
Conclusion: Hertha needs a lot of money quickly, otherwise the license is in danger.