Bremen - It had been announced, now it is certain: Bundesliga club Werder Bremen will launch a bond on the market in the next few weeks to prepare for possible further financial consequences of the corona pandemic beyond the current season.
This is not a fan bond, but a medium-sized bond that is aimed at institutional investors, i.e. credit institutions, insurance companies, investment and corporations or pension funds and pension funds.
Only then should private investors with capital market experience be addressed.
A corresponding report in the "Börsen-Zeitung" coincides with the information from the DeichStube.
It is about a sum of 15 to 20 million euros.
Werder Bremen
does not want to comment on the topic at the moment.
Four weeks ago, however, Werder boss
Klaus Filbry said
in an interview with DeichStube: “It is currently looking good financially, we will be financed through to the end of the season.
But in the event that we have to do without audience income for the next season as well, it is our duty of care to examine different financing options. ”The process is now apparently complete, the
bond issue is
on its way.
Werder Bremen
had already taken out a
loan
of 20 million euros
with the help of a state guarantee at the end of last year
in order to be covered for the current season.
Because
Filbry estimated the shortfall in
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.
In addition, TV revenues have fallen, and not all sponsors can meet their full obligations by a long way.
Werder closed the 2019/20 season with a
record minus
of 23.71 million euros.
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.
Werder Bremen launches bond: “A fair deal with good interest”
When it comes to refinancing,
Werder Bremen
also relies on
transfers
from service providers in the summer.
But those responsible do not want to rely on that alone.
“We have to be prepared for any eventuality.
We haven't had a pandemic yet and don't know what's in store for us, "Filbry recently declared and
announced
about the
bond
:" It would be a fair deal with good interest rates. "
In the event that the corona situation relaxes in the summer and the
money is
not needed to compensate for a lack of viewer income, there are apparently already plans.
Parts of the
bond
could then be
used to strengthen the team's competitiveness and also to develop them strategically with young players.
Either way: It's about the future of
SV Werder Bremen
, which is currently
not at risk in
terms of sport or finance in the
Bundesliga
.
But the green-whites don't want to feel too safe.
(knee)
To the last message from February 15, 2021:
This is how Werder Bremen is planning the ultimate emergency: Fan bonds as the "very last option"
In terms of sport,
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 - When asked,
Werder boss Klaus Filbry
confirms
these mind games, but also emphasizes very clearly that a
fan bond is
"the very last option that we actually don't want to and very probably won't".
Then more of a medium-sized company bond.
There is a sum of 15 to 20 million euros that
Werder Bremen
would like to generate in the event of an extreme emergency.
The number will
Klaus Filbry
not confirm, but he explained the actions of the Management Board: "At the moment it looks financially well off, we are fully financed until 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. but have not yet made a final decision.
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 do not 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 have already
borrowed fans
.
Often it was about financing the construction of a training center for young people - an investment in stones and not in legs.
The latter has always given those responsible for Werder stomach ache on this topic and quickly ended the discussions.
A lot of trust is at stake - and that goes for the most important asset of a traditional club like
Werder Bremen
: the fans.
They 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 allow the bond to continue - in whatever form.
The emotional connection to the club plays a major role in this.
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.
They 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 for any eventuality.
We haven't had a pandemic yet and don't know what's in store for us. ”And relying on transfer revenues alone is not a safe solution either.
Werder Bremen made record losses in the 2019/20 season
The Werder boss estimates the loss of income between the first lockdown almost a year ago and the end of the season at 40 million euros.
The biggest item is the lack of ticket business because of the ghost games.
In addition, TV revenues have fallen, and by no means all sponsors can meet their full obligations, just as
Werder Bremen
is unable to perform all services in the pandemic.
The serious consequences of this became clear last week.
Via "Bild" newspaper leaked 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 also the 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.
(kni) Also interesting: Fight for Florian Kohfeldt: Werder Bremen must tremble so much for his coach!
* DeichStube.de
is part of the nationwide Ippen-Digital editors 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
in German professional football have already made several clubs use.
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.
Hamburger SV:
There 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 also 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 Köln:
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 relying on corporate bonds (called Mittelstandsanleihe at Werder).
The model is designed to earn up to 50 million euros.
The interest rate is between 4.25 and 5 percent.
Special features:
Fan bonds often include jewelry bonds, also known as 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 is giving the club his money.
Negative example:
Alemannia Aachen issued the “Tivoli bond” in 2008 to finance the stadium construction.
In 2013 the club filed for bankruptcy and the fans lost their money.
(csa)