Thirteen of 36 clubs in Germany stare at short-term insolvency

Monday, April 6th, 2020 00:00 |
A TV crew covers a Bundesliga game behind closed doors. Photo/FILE

Berlin, Sunday

The current economic situation of many German football clubs is more drastic than expected.

According to a report from the sports magazine Kicker, 13 of 36 sides of the first and second divisions face insolvency in the case that the shutdown continues.

The 2019/20 campaign of the national leagues has come to hold after the 25 rounds of matches beginning of March due to the coronavirus crisis.

The league association announced it remains the main goal to finish the current season by the end of June.

Plans include games behind closed doors run with a minimum number of staff involved for the remaining nine matchdays. The restart is scheduled for the beginning of May.

Inside reports speak of plans to test players every three days and only isolate positively tested footballers but not inevitably the entire team.

Sports medicine specialists are about to set up a strict set of measures that every side has to follow aside of compulsory rules for arena and TV crew staff.

With the drastic strategy, German football is trying to avoid insolvency for several clubs after the league association had asked all clubs to investigate their financial situation under circumstances of an ongoing shutdown.

Seven in danger

The internal reports are talking about one Bundesliga side having to quit by the end of May and three by the end of June in case the TV deal money isn’t provided. Twelve clubs are said to have already used expected payments due in May to cover current costs or assign receivables to banks or business partners.

Seven clubs of the second division face illiquidity by the end of May without further payments. 

The fourth TV money tranche for the current season is scheduled to be paid out at the beginning of May but only when games take place. Two clubs of the second-tier claim to run out of money by the end of June.      -Xinhua

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