FCK is back in the 2nd Bundesliga – and is attracting attention with spectacular transfers. The Red Devils filed for bankruptcy almost two years ago…
June 15, 2020 was a turning point in the recent history of 1. FC Kaiserslautern. At that time, the people of the Palatinate were financially on the brink. The debts of the four-time German champions are said to have amounted to around 24 million euros at the time, a haircut between FCK and creditors had failed.
Last chance plan bankruptcy
The license for the third division season seemed questionable for a long time when the Red Devils took their last chance on June 15th and initiated bankruptcy under self-administration, a so-called planned insolvency. “The aim of the procedure is to quickly restore economic performance,” said the then managing director Soeren Oliver Voigt. “With this option for a medium- and long-term economic restructuring, however, we can noticeably expand our scope of action and free up the game operations.”
Red devils use consequences of the pandemic
And that’s exactly how it happened: Kaiserslautern eliminated several major problems at the same time with the planned insolvency and thus created the basis for the now completed return to the 2nd division. The FCK got rid of its debts and became more attractive for investors due to the elimination of legacy issues. The club also took advantage of the consequences of the corona pandemic. Because the German Football Association (DFB) suspended the otherwise ordered deduction of nine points as a sanction for insolvency due to the economic consequences of the corona crisis in 2020. All player contracts also remained valid.
The FCK as an opportunist
The Palatinate acted as opportunists because they legally exploited the special circumstances of the corona pandemic. The planned insolvency thus went from being a horror scenario to a sensible business model.
The creditors of 1. FC Kaiserslautern approved the insolvency plan including a haircut on October 29, 2020. With the completion of the planned insolvency, the traditional club was as good as debt-free on December 7th, 2020 – without any negative sporting consequences. The ground for a new beginning was prepared.
Regional investor group gets involved
The FCK was thus again an attractive investment – and at the same time was looking for a partner to get “fresh money”. Negotiations were held with several interested parties, and the so-called regional group of companies around the entrepreneurs Klaus Dienes from Kaiserslautern and Giuseppe Nardi from Homburg was awarded the contract in March 2022. The so-called “Saar-Pfalz-Invest GmbH” is said to have paid around eleven million euros for almost 33 percent of the shares in 1. FC Kaiserslautern GmbH & Co. KGaA.
Also administrator Dr. Andreas Kleinschmidt, who represented the interests of FCK creditors during the planned insolvency, agreed with the choice. “It’s easy to understand why they want to get involved. They know the club and are from the region. It’s also a concept that fits into the structure of the club. And it leaves room for other, additional investors in the future,” Kleinschmidt told SWR Sport at the time.
The FCK was liquid again and in the search for reinforcements reached directly into the top row of the third division shelf. In the summer of 2020 – i.e. during the ongoing planned insolvency – players who were already in demand across the league, such as Tim Rieder, Marvin Pourie or Kenny Prince Redondo, were signed in the winter, albeit on loan, professionals such as returnees Jean Zimmer or Felix Götze.
Löwen coach Köllner: “If you don’t have any money, you don’t get any”
The new possibilities of FCK after the planned insolvency were not well received everywhere in the 3rd division. Michael Köllner, coach of TSV 1860 Munich, was the clearest at the time: “You used to be deducted nine points and got a big fine. I’ve always learned: If you don’t have any money, you don’t get any,” said the lion coach. The background was that the Blues had also courted Rieder, but he decided on the offer from Kaiserslautern.
An absurdity for Köllner. “Unfortunately, the regulations allow that. Bankruptcy without you having any disadvantages. We always have to make a continuation prognosis. I hope that’s the case with such clubs at some point,” he rumbled.
Crash in the regional league just avoided
FCK should not have cared about the criticism from the league. In the Palatinate, the focus was again on sports. But despite the strong squad, things didn’t go completely smoothly for the Red Devils. In the 2020/2021 season, FCK was in danger of relegation in the 3rd division for a long time and only avoided falling into the Regionalliga Südwest on the third to last matchday.
Following this messed-up season, Marco Antwerpen, who was introduced as the new coach on February 1, 2021, and Thomas Hengen, who was hired a month later as the new Managing Director Sport, managed to put together a strong squad for the 2021/2022 season. The previous loan Zimmer now stayed with FCK, Mike Wunderlich, Rene Klingenburg or Terrence Boyd in winter stood for the ambitions of the Palatinate to finally manage the return to the 2nd division in the fourth attempt.
And it was possible thanks to a largely strong season at 1. FC Kaiserslautern. Of course it wasn’t without drama – that would also be atypical for FCK. The Palatinate have blocked a good starting position for direct promotion with three defeats in the last three league games – to then prevail in the relegation against the third from last in the 2nd division, Dynamo Dresden.
YouTube video from SWR Sport: “Kaiserslautern celebrates promotion – Your FCK #35 | SWR Sport”
Away from the field, “fresh money” came in again in the spring. In March of this year, the Pacific Media Group (PMG) took a stake of almost ten percent in GmbH und Co. KGaA der Pfälzer. The FCK can thus continue to upgrade the squad for the second division in the current transfer period – also thanks to the money from the PMG. “Big names” like Andrew Luther or Eric Durm are suddenly possible. This too will probably be viewed with suspicion by one or the other competitor.
Hengen defends himself against the criticism
Criticism that Managing Director Hengen does not challenge. “We have always kept it in such a way that we do not comment on our competitors. I do not know their internals and not ours,” said the ex-professional in an exclusive interview with SWR Sport. “If other clubs judge us, we have to accept that.” At FCK, Hengen continues, they act with the necessary common sense. “We manage and budget as we can and are allowed to do so. The previous deals were absolutely justifiable from an economic point of view.”
“I can understand the frustration”
In any case, the Red Devils would not have done anything reprehensible. “Certainly, these modalities were only made possible during the Corona period. We used this loophole, which was also very important for the club,” says Hengen, who also admits: “I can understand the frustration of one or the other club. “
Kleinschmidt: “Starting on a healthy basis”
The administrator at the time, Kleinschmidt, is not surprised that FCK is liquid again. “That it turns out well in the end is actually the desired result of such a procedure. So that you can then start again on a healthy basis. That is actually the award of a successful restructuring procedure. That’s why I’m pleased,” said Kleinschmidt to SWR Sport .
So in retrospect it was a success, but at the time the situation was by no means easy. “Of course nobody is happy when people lose money,” says Kleinschmidt. “It took a lot of persuasion, it was a tough struggle and negotiating with the creditors that they waived a large part of their claims to make the restart possible.”
The “restart” led FCK to the second division. They now want to establish themselves there, also through reinforcements such as Luthe or Durm. And there are more players to come.
And who knows? Maybe there are more “big names” there? Because the FCK can act again and not just react. The Red Devils, they’re somebody again. Above all, an attractive traditional club. A development that began almost two years ago.
