Is Donar still viable? The eyes of basketball-loving Groningen are focused on Jakob Klompien, the chairman of the specially created task force that is facing the tour de force to save the club from destruction with a mega debt of 1.75 million euros.
First tell us who you are, Mr Klompien.
,,I am Jakob Klompien, a real Groningen native who has worked at Rabobank for over 35 years across the country and in several places in the world. In recent years I was chairman of the board of Rabobank IJmond. In that capacity I also became chairman of the supervisory board of football club Telstar. I hope that next season FC Groningen’s championship match will take place in Velsen during the penultimate competition round on Friday 3 May, because I am also a fan of the Trots van het Noorden.”
But save Donar first.
“We are facing a very big challenge, the survival of the club is at stake. Such an iconic name in the Dutch sports world should not be lost. There are so many people emotionally connected to this club. To prevent the doom of bankruptcy, a task force of independents has been set up to critically examine the possibilities of a last-ditch rescue operation. I do this together with Paulien Waninge, tax lawyer, notary Gert Bossinade, Janet Terpstra as a specialist in the field of employment law and corporate law and Marie-Lou Gregoire as a communication specialist. We work closely with the board of Donar and house accountant BDO.”
First the numbers.
“Donar’s total debts have risen to 1.75 million euros in recent years. On top of this amount, there will probably be an additional assessment from the tax authorities and a VAT assessment, if we were to reorganize. In the past season, an amount of 160,000 euros has already been used from the budget for next season. All in all, you end up with a debt burden that exceeds 2 million euros. There is still some progress. These amount to approximately 450,000 euros. But as so often, the debts are hard and immediately due and it remains to be seen whether you will eventually collect the assets. Donar’s equity has fallen to -1.3 million euros. It goes without saying that Donar cannot meet its obligations in the short or medium term. A very hard conclusion that many people are shocked at.”
How on earth can this happen?
,,It is not up to me to make a final judgment on this, but both the board of Donar and the supervisory board are very surprised by these numbers. It is clear that the checks and balances have not functioned. In recent seasons, an incorrect insight into the figures has been provided. That has turned out more negative every season. Reassuring reports about the club’s financial situation turned out to be out of touch with reality. The creditors also received these messages. In addition, we encountered bookings of which the importance of Donar is not clear to us. We are still discussing this with the treasurer. In the context of the legal context, I do not want to comment on that. In any case, an irregularity has been discovered.”
This can no longer be straightened out, would you say?
“That remains to be seen. If Donar goes bankrupt, there are only losers. This applies in the first place to the creditors. There will be little left after the claim to be collected from the Tax and Customs Administration as the largest creditor. In addition, the fans lose their club, the city a billboard, Dutch basketball a top club. The sporting world is being seriously damaged. We don’t want it to come to that. There is really only one realistic way out, which is to bring in external money by setting up a BV with shareholders who put money on the table. In short, the club must be sold. With that money, an agreement must be reached with the creditors. There must also be some liquid assets in the club to be able to continue at all. We are working very hard on all of this at the moment.”
That sounds promising.
“Yes, but time is our crucial enemy. Within now and three weeks everything must come together and a blow must be given, also to be able to give the club the new BV structure, to notarize everything, to secure the license. If creditors are willing to drop an important part of their claims, we estimate that we need about 500,000 to 600,000 euros for the club to survive. We have about three tons of that. That’s nice, but not enough. That is why I appeal to everyone who is able to help the Groningen heritage Donar in the coming weeks. Investors, crowdfunding among supporters. Don’t let it go. It is now or never.”
What about asking for help from the municipality? Will she come up with a loan?
“We have withdrawn this request. This has to do with the fact that decision-making could only take place in October. That is too late for the operation as we now have for the glasses. The municipality does have an indirect role as a shareholder of Martiniplaza, one of the creditors. Those contacts are constructive.”
The investors who would like to save the club seem to have a hard requirement. The current board members should take their responsibility and resign. Is that right?
“The investors, but also those involved in the creditors’ agreement, have emphatically indicated that this cannot remain without consequences. The investors also want a clear role in the appointment of who should lead the club. In Groningen style, who pays decides. You can also think of a salaried director instead of a club led by volunteers.”
“This does not suit Jannes”
The board members of Donar who are still in office are formally silent with palpable pent-up anger when it comes to the departed treasurer, who seems to have had a big hand in bringing the club to the brink anyway.
,,What we can say is that for several years in a row we have been provided with incorrect information on the basis of which we have taken decisions”, chairman Jannes Stokroos said formally. “I put on the penitent for that, my wife also says, how could you have let this happen Jannes? It has to do with the fact that you perform the function as a volunteer and must be able to fully rely on your fellow board members. I have had no reason to doubt the information I was given. That confidence has now turned out to be misplaced. I’ve been a driver for thirty years, but this has never happened to me. It also doesn’t fit who I am, it’s not my standards and values and not those of the other board members.”
Hollyhock does not intend to resign himself. “I am not concerned with that at all. Thanks to my employer, I have taken five weeks off because I feel morally obliged to ensure that Donar gets this new start. I get a lot of motivation from parties who stand up right now and say: this does not suit Jannes the way it went. If the shareholders come and say, Jannes, thanks for your effort, but we have someone else, I don’t mind at all. Then I have done this work with passion for seven years and I will continue on the fan stand.”