Hertha BSC in need of money: License under pressure – repayment is getting closer!

Hertha BSC in need of money: License under pressure – repayment is getting closer!

Challenging times lie ahead for Hertha BSC as the club prepares to repay a €40 million bond. This repayment must be made by June 3, 2025 and is essential for licensing in the coming 2nd league season. Without a clear guarantee of repayment, it will be difficult for the traditional club to obtain the required license, as [Bild] reports.

A first attempt to restructure the bond and reduce interest rates from 10.5% to 6.5% by 2028 failed. Sports economist Christoph Breuer emphasizes that creditors may only agree if they can develop a certain level of trust in the repayment. However, Breuer also warns that the time until repayment is very short and it could be a “trembling game”.

Financial situation and stability

In a financial report for the first half of the 2024/2025 season, Hertha BSC brings both positive and worrying news. The repayment of the bond is both secured by a financing concept with several partners and is crucial for economic stability. Managing director Thomas Herrich emphasizes that long-term measures for financial consolidation have already been initiated. Despite these positive aspects, the club had to accept a loss of around 9.5 million euros for the first half of the season, which was largely due to depreciation of player values. Operationally, the loss amounts to 360,000 euros, while the negative equity has increased to around 32.5 million euros, as [rbb24] notes.

However, debt reduction has been significantly advanced over the last year and a half, from 102 million euros to just under 54 million euros. Nevertheless, the club remains dependent on transfer income in order to remain active on the transfer market, which is due to the tense financial situation.

Strategies for the future

Hertha BSC is also considering buying back shares of which 78.8% are held by the US investment company 777, which is in liquidation. This buyback will take place in a later phase after the licensing has been secured. President Fabian Drescher has already held discussions with Hertha friends about support for the buyback in order to financially strengthen the club's management.

The latest developments show that the club operates in a complex area of ​​tension between financial necessity and sporting success. In order to be well positioned for the next season, there are a number of steps that should enable Hertha BSC to emerge from the current crisis and to position itself stably again on the football market.