Sports Illustrated Reports All 1. & 2. Bundesliga Teams Licensed For Next Season

[footyfan1]

News follows. What will be intriguing is to see what conditions are attached to each license of teams in deep debt...........






All Bundesliga Clubs To Receive License For Next Year Despite Debt
Posted: Tuesday Apr 19, 2005 11:26 AM

FRANKFURT, Germany (AP) -- All 36 Bundesliga clubs are expected to get operating licenses for next season despite combined debt of 698 million Euros (US$900 million).

The Bundesliga's governing body, known as the DFL, said Tuesday the 36 clubs in the first and second divisions also have about 1 billion Euros (US$1.29 billion) in assets.

"That's a solid starting point,'' DFL business manager Christian Mueller said.

The debt is smaller than that in the Spanish and Italian leagues, but there are warnings that the Bundesliga is facing a major problem.

"The situation is very tense and very critical. It's five minutes to 12 for the Bundesliga,'' financial expert Angelika Amend told the German television news show Frontal21.

Amend said FC Kaiserslautern, Hamburger SV and Schalke were the deepest in debt behind Borussia Dortmund, which is struggling to survive after striking a deal with creditors.

The Spanish league reported in 2003 that its clubs were 1.6 billion Euros (US$2.08 billion) in debt.

In Italy, a bankrupt Fiorentina was demoted to the fourth division in 2002, while Lazio only saved itself from the same fate by restructuring its 140 million Euro (US$180 million) debt.

[The Old Lady Hertha]

Hertha is pretty bad in debt too...

lucky for everyone, this is good...but good financial work must be done to ensure that this continues.

[PileD]

For Schalke and Hertha is the different to others, they invest a lot of in grounds and future.

Schalke bought 1.000.000 square meters plus one stadium, they will build a hotel and some footballschools on it. Think Hertha will do the same.

[96Squig]

Good to hear that the situation here in Hanover is not all that bad. I think the Bundesliga will make it, and as soon as there are European laws regarding this Italy and Spain will be in trouble we'll have avoided ( I hope).
will be interesting to watch the BVB though.

[Vfbstuttgartfan]

I never knew Kaiserslautern had financial troubles...

[96Squig]

I never knew Kaiserslautern had financial troubles...
LOL your are not being serious, are you? Many ppl thinkt hat they should not have gotten the licence a few years back.

[footyfan1]

LOL your are not being serious, are you? Many ppl thinkt hat they should not have gotten the licence a few years back.


I like FCK, but they really shouldn't have........

[footyfan1]

For Schalke and Hertha is the different to others, they invest a lot of in grounds and future.

Schalke bought 1.000.000 square meters plus one stadium, they will build a hotel and some footballschools on it. Think Hertha will do the same.


BTW, BVB has a four-star hotel and is building a training academy, which is a part of the debt. We didn't just throw all that money away. The idiots just made the mistake of counting on money they didn't have.......

[The Old Lady Hertha]

I don't see how Hertha can or could buy their stadium...its huge and belongs to the DfB doesn't it, since the DfB Cup final is there?

[footyfan1]

I don't see how Hertha can or could buy their stadium...its huge and belongs to the DfB doesn't it, since the DfB Cup final is there?


No. The DFB/DFL doesn't "own" any stadium. Despite the Berliner Olympiastadion being the closest thing, Germany does not have a "national stadium".

I believe the Berliner Olympiastadion is owned by the city of Berlin.

[96Squig]

I don't see how Hertha can or could buy their stadium...its huge and belongs to the DfB doesn't it, since the DfB Cup final is there?
I'd guess it is owned by the city Berlin istelf and both Hertha and the DFB rent it. I don't think the DFB owns any stadiums, maybe Frankfurt, because the club belongs to the DFB anyways :-)

[KarlMai]

I don't think the DFB owns any stadiums, maybe Frankfurt, because the club belongs to the DFB anyways :-)


Don't tell these jokes without an irony smiley, or some innocent people might belive them ;)

[96Squig]

Don't tell these jokes without an irony smiley, or some innocent people might belive them ;)
Ok, it was a JOKE! WARNING! My last posting contained a joke

wait. it isn't true? :-(


;-)

[DemmahoM]

How can Schalke be in deep debt if they are in the Forbes top 20 rich list?? :confused:

[96Squig]

How can Schalke be in deep debt if they are in the Forbes top 20 rich list?? :confused:
They own a lot of stuff as ground (Grundstücke) and buildings I think...

[jonam]

How can Schalke be in deep debt if they are in the Forbes top 20 rich list?? :confused:


That list (IIRC it was not se up by Forbes but by some other magazine) gives informations about turn-overs only but doesn't say a word about being profitable or having debts or not. Just pure annual turn-over.

Schlacke have debts of about 112 Mio Euro (not including stadium financing).

[DanielHSV]

Schlacke have debts of about 112 Mio Euro (not including stadium financing).
NOT including? Are you serious?

[jonam]

NOT including? Are you serious?


No joke. But as their stadium creates much money they can finance that deal. Their problem are those 112 Mio they more or less wasted during the last couple of years. And it is NOT true that most of these 112 Mio Euro are bound in infrastructure. Yes, it is true that they own some land (about 800.000 m²) round the Arena, but AFAIK some parts of that are just "Erbbaupacht" as it is called in German. So as said, most of that money was just wasted.

[jonam]

That list (IIRC it was not se up by Forbes but by some other magazine) gives informations about turn-overs only but doesn't say a word about being profitable or having debts or not. Just pure annual turn-over.

Schlacke have debts of about 112 Mio Euro (not including stadium financing).



OPPPPPS....sorry. Didn't knew there was a new list by Forbes (am not that often online anymore). So forget the quoted posting.

[Ricky_DCU]

OPPPPPS....sorry. Didn't knew there was a new list by Forbes (am not that often online anymore). So forget the quoted posting.

Yeah, the Forbes list is ranking the clubs by their supposed valuation, including assets. Whereas the older list, put out by Deloitte and Touche, ranks clubs based on their turnover only.