Kaiserslautern close to insolvency

Discussion in 'Germany' started by olafgb, Jan 29, 2003.

  1. olafgb

    olafgb New Member

    Jun 6, 2001
    Germany
    The finance office demand 12.9 M tax payments of 1.FC Kaiserslautern for illegal salary payments. 8.3 M of this sum have to be paid immediately, 4.6 M are matter of further investigation. Kaiserslautern's chairman Rene C Jäggi wants to stop the payment with lawsuits, but he (is from Switzerland) doesn't seem to know the German tax system, in which you have to pay first and then get something back if you paid too much - in other words: FCK got to pay 8.3 M and if the court rules that the offices did wrong calculations (what is very unlikely as the 4.6 M, which threaten for later payment are the critical part). Similar to Schalke's stadium financing they are looking for an investor, who pays a huge sum and gets part of the attendance income as guarantee (Jäggi thinks about 85 M for 24 years). My personal opinion is that the investor has to be a giant idiot as he hardly gets a security that the club survives over the next years.
     
  2. Rhinocuse

    Rhinocuse Member

    Aug 3, 2001
    Southbridge, MA
    Club:
    New England Revolution
    Nat'l Team:
    United States
    Olaf,

    What are the on-field implications for this? Is there any chance at all they could get a license to play in the 1. or 2. Bundesliga next year. Will they be able to field any team at any level at all next year?

    This is really depressing :(
     
  3. olafgb

    olafgb New Member

    Jun 6, 2001
    Germany
    They try to sell the stadium and reach delayed payments to the taxation offices. In 2.Bundesliga they'd hardly have a perspective as Jäggi today confessed. The licence for next year surely is in danger, they also might face consequences because of telling incorrect numbers for this season (Kaiserslautern sued themselves yesterday at the DFL to reach a mild penalty - this can go from fine over point reduction to demanding back the licence) - you can be sure though that DFL tries everything to rescue Kaiserslautern.
     
  4. PFSIKH

    PFSIKH Member

    Nov 1, 1999
    ClarkVegas
    Club:
    New England Revolution
    Nat'l Team:
    United States
    If they lose their liscence and then they are an amateur team? What league would they drop to?
     
  5. olafgb

    olafgb New Member

    Jun 6, 2001
    Germany
    That depends. You need a licence at least until D4. Naturally you get the highest income in Bundesliga, so consolidation is easier the higher you play. However, I think that they'd file a request for insolvency if they relegate or don't get a licence. If they are lucky they then could go on playing in 2.Bundesliga, Regionalliga or Oberliga (depends on what the league administrations say about their budget calculations), but in the worst case the club would have to stop existing
     

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