In terms of sport, SV Werder Bremen is back on track after almost relegation, but the economic situation for the Bundesliga club remains extremely difficult due to the serious consequences of the corona pandemic. In order to be able to survive another possible season with ghost games – i.e. beyond the summer – Werder is considering various financing models according to information from the DeichStube * – including a fan bond, which was previously considered taboo.
Bremen – confirmed on request Werder boss Klaus Filbry these mind games, but also clearly emphasizes that one Fan-Anleihe “ The very last option is that we actually do not want to move and are very likely not to move”. The n more of a medium-sized company bond.
The re is a sum of 15 to 20 million euros in the room Werder Bremen want to generate in the event of a dire emergency.
The number wants Klaus Filbry not confirm, but he explains the management’s approach: “Financially, things are currently looking good, we will be financed through to the end of the season. But in the event that we have to do without audience income in the next season as well, it is our duty of care to examine different financing options. “This would also include medium-sized bonds and fan bonds, says Filbry:” We are currently in this process, but haven’t made a final decision yet. Fan bond providers have come to us again and again in the past. We always checked it carefully, but never followed it up. And we hope that in this case too we don’t have to take this option. “
Werder Bremen has already taken out a loan of 20 million euros
Of course, it would be easier to borrow the money from the banks. But Werder Bremen has already taken out a loan of 20 million euros to survive the current season. A guarantee from the state of Bremen was required for this. If Werder wants to borrow more money from banks, it should not only be difficult, but above all very expensive. Bonds allow a lower interest rate.
Various clubs such as Hamburger SV, Schalke 04 or 1. FC Köln already have Fan bonds made. Often it was about the financing of the construction of a youth training center – an investment in stones and not in legs.
The latter always gave those responsible for Werder stomach ache on this topic and quickly ended the discussions. A lot of trust is at stake – and that is the most important asset of a traditional club like Werder Bremen: the fans.
The y would be involved in buying players or their salaries through a bond for day-to-day business. That could cause great displeasure if the professionals do not perform as desired. As is well known, friendship ends with money.
Fan bond with Werder Bremen can bring good interest
Every fan could of course decide for themselves how much money is involved. In order to appeal to as many followers as possible, the starting amount for such bonds is usually in the three-digit euro range.
The term is several years with an annual interest rate of up to six percent. It is also possible to have the interest paid out in full at the end.
The clubs hope that many fans will forego it out of solidarity and let the bond continue – in whatever form.
The emotional connection to the club plays a major role. It looks different with a medium-sized company bond. This is aimed at institutional investors, companies and private investors who tend to have a business relationship with the association.
The y are interested in the good return that is otherwise not so easy to achieve on the capital market. “It would be a fair deal with a good return,” says Filbry. He would still like to do without it, “but we have to be prepared in any case. We haven’t had a pandemic yet and don’t know what’s in store for us. ”And relying solely on transfer revenues is not a safe solution either.
Werder Bremen made a record minus in the 2019/20 season
The Werder boss estimates the loss of income from the first lockdown almost a year ago to the end of the season at 40 million euros.
The largest item is the lack of ticket business because of the ghost games. In addition, TV revenues have fallen and not all sponsors can meet their full obligations, just as they cannot Werder Bremen is able to perform all services in the pandemic.
The serious consequences of this became clear last week. Via the “Bild” newspaper leaked out that Werder Bremen made a record minus of 23.71 million euros in the 2019/20 season. Sales fell from 157.1 million euros in the previous season to 116.7 million euros.
The equity of 7.6 million euros has not only been used up, but there is now a minus of almost 16 million euros. Normally, these numbers would have been announced long ago at the general meeting, but due to the corona pandemic, this event will take place in May at the earliest. In the next few weeks, however, all committees and members should be informed, said Filbry. Only then will he want to comment on the figures – and maybe there will be a new status on the difficult topic of bonds. (knee)
* DeichStube.de is part of the nationwide Ippen-Digital editorial network.
This is how fan bonds work – these are the special features:
Werder emergency plan fan bonds: HSV did it, in Aachen it went wrong
From Fan bonds have already made use of several clubs in German professional football. For example Hamburger SV, 1. FC Köln and Schalke 04.
This is how it works:
The individual fan can deposit between a few hundred to several thousand euros.
The fixed interest is due annually, after the bond has expired, the amount deposited is repaid. Or a new bond will replace the old one. Schalke later switched to listed corporate bonds.
The re was already a bond issue from 2012 to 2019. At that time, HSV wanted to raise 12.5 million euros for the construction of the “HSV Campus”, which worked within two weeks. Interest was paid on the first bond at six percent. In order to minimize repayments and to get fresh money again, a second bond was started in 2019. Duration until 2026, volume 17.5 million euros.
1. FC Cologne:
The fan bonds launched in 2005 are now in their third generation.
The current bond started in 2016 and runs until 2024. At 3.5 percent, the interest rate is only something for real fans, but not for profit-conscious third-party investors.
The total volume: 15.5 million euros. Fans can invest from 100 to 5,000 euros.
Schalke 04: Schalke started in 2010 with a fan bond (volume: 11 million euros), but since 2012 the club has been using corporate bonds (called Mittelstandsanleihe by Werder).
The model is designed to earn up to 50 million euros.
The interest rate is 4.25 to 5 percent.
Particularities: Fan bonds often include jewelry bonds, also called jewelry stocks. Means:
The bond is issued as a decorative document, but is not part of a securities account. Interest and repayments have to be applied for, sometimes the fan waives them in order not to have to hand in the paper and to be able to use it as wall decoration. He gives the club his money.
Negative example: In 2008, Alemannia Aachen issued the “Tivoli bond” to finance the stadium construction. In 2013, the club then filed for bankruptcy and the fans lost their money. (csa)