Hertha BSC: Financial worries and creative solutions needed!

Hertha BSC: Financial worries and creative solutions needed!

The financial situation of Hertha BSC remains a hot topic that heats up people's minds. Despite strict austerity measures, the club continues to struggle with significant financial challenges. The latest financial report shows that the hoped-for black zero was not achieved last season. Instead, the club had to accept an operating loss of around ten million euros, and with taxes and depreciation the loss adds up to over 33 million euros. These alarming numbers raise questions that Financial Director Thomas Herrich must answer at the upcoming general meeting on November 17th rbb24 reported.

The situation is further complicated by the incomplete payments from investor 777 Partners. Of the 100 million euros originally promised, the company has so far only transferred 75 million. This missing 25 million euros is almost identical to the deficit on the club's balance sheet. It is uncertain whether Hertha will ever be able to count on the remaining payments as 777 Partners' financial situation is also strained. In the first half of the season, an outstanding claim of 4.9 million euros was completely written off out of caution, and no corresponding claims were recorded for the second half of the year.

Radical austerity and its consequences

A bright spot in the gloomy financial situation is the radical austerity policy that Hertha took after relegation to the second division. Players' salaries were significantly reduced through contractual clauses, resulting in savings of over 50 million euros compared to the last first division season. Although these measures improved business figures in the short term, income from TV marketing fell drastically. Instead of the almost 48 million euros from the first league, the club now only receives around 29 million euros.

The question remains as to how Hertha plans to solve its financial problems in the long term. Those responsible are again expecting a loss of around 20 million euros for the current season, which is likely to worry the fans. It may even be necessary to sell players with high market value to ensure financial stability. Players like Ibrahim Maza and Fabian Reese could be the focus, which would be emotionally painful for the club's supporters.

The urgent bond repayment

Another pressing issue is the repayment of the 40 million euro bond, which is due in November 2025. Hertha bought itself a two-year reprieve with an interest rate increase in 2023, but now the repayment is coming back into focus. Financing for the bond must be available by spring 2025 at the latest, as the DFL will examine the license documents for the 2025/26 season. The club is already in talks with five potential financial partners to find a solution, but time is of the essence.

In addition, Hertha has to pay off liabilities of around 16 million euros this season. As of the balance sheet date, the club had liquid assets of 27.5 million euros, which is sufficient to pay off these debts. But the reserves have been used up and the creativity of those responsible is needed in order to successfully continue the restructuring course that has been set rbb24 reported.

The coming months will be crucial for the future of Hertha BSC. The members and fans can look forward to seeing what answers the club management will give to the pressing questions and how the club can stabilize its financial situation.