Borussia Dortmund CEO Hans-Joachim Watzke fears some of the 36 German professional clubs might not survive the current crisis caused by the coronavirus outbreak and its economic consequences.
While the loss of ticket sales (500 000 to 3.5 million Euros per game) appears bearable, the damages caused by unfulfilled contracts with TV presenters and sponsors are a substantial threat, the 60-year-old commented.
“Not for us, but for several others, things could turn into a battle against insolvency,” the official said. “We face the biggest crisis in the history of German football.”
Some media reports speak of a loss of 68 million euros per match day. The tabloid Bild rated the total losses out of unfulfilled TV contracts at 680 million euros when the season would have to end after 25 rounds of matches.
On Friday the German league association announced to postpone league action until April 2. The proposal needs to be approved by the majority of clubs at their emergency meeting next Monday.
“Contracts with sponsors at times say you have to deliver 34 games over a season,” Watzke commented. The reduction of payments would result out of unrealized agreements. The same applies to TV contracts,” he added.
“What happens when you haven’t satisfied your contract partners’ demands a month after the originally planned end of the season?”
Clubs not able to pay wages are in danger of losing their players on a free transfer basis, Watzke claimed. Incalculable consequences could follow, the functionary underlined.
Therefore, an early-season ending without making up for suspended games is seen as the worst case. Some call it a horror scenario.
The Sueddeutsche reports some clubs indicate to have background information from the federal health authorities. According to that, the ministry of health does not expect that postponed games can take place later in the season with an audience.
Only games behind closed doors games would possibly be implementable.
To operate over six to eight weeks without income will be devastating even for a convincing business strategy, Watzke assumed.
Under pressure, credit lines can turn into a delicate case. “You have to pay your players no matter if you gain profit or not,” Watzke said.
The Dortmund official and Bayern Munich chairman Karl-Heinz Rummenigge are said to have opposed plans to postpone games instead of running them behind closed doors but had to deal with critics.
“This is crazy. Please stop fooling around and land in reality. Let’s be honest, there are much more important priorities than any sport,” Bayern Munich midfielder Thiago complained after the clubs tried to run games this weekend without a crowd.
After the match day got cancelled Watzke and Rummenigge see the Bundesliga ahead of critical strategic decisions.
“Solutions are required to secure the future of clubs facing turbulences,” Watzke said. Options need to be discussed, and solidary measures have to be taken.
To find the balance between the inevitable fight against the virus crisis and economic needs seems the most significant challenge as many of the 50,000 jobs in the business football are under threat.
