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The German Football Association Faces The Most Serious Crisis In Its History ..

A senior official in the German Football Association has warned that the country’s largest sports organization faces the risk of bankruptcy in the event that international matches, which are due to the needs of the new Coronavirus, are not resumed.

The Federation’s treasurer, Stefan Osnabrugge, said during an exceptional meeting on Monday that the union is facing the deepest economic crisis in its modern history.

Osnabrugge, the widely circulated German newspaper, quoted statements that he hoped will resume international matches in the second half of this year.

He added: “In other words, if there are no more international matches this year, the Union will go bankrupt. We have to act in a very economic rational way to reduce losses as much as possible.”

The official stressed the necessity of adopting large financial cuts to avoid the worst scenario, in light of the possibility of the Union this year suffered financial losses amounting to 77 million euros, due to the epidemic of “COVID 19”.

He said that the loss of 77 million euros will not lead to the bankruptcy of the union, as it is possible to rely on assets and financial liquidity of 13.8 million euros to mitigate the impact of these losses.

But he hopes to avoid having to cancel jobs, knowing that the union has reduced the working hours of many of its employees as of March 1, according to the “Euro News” news network.

The German Football Association took additional austerity measures, including freezing payroll increases and reducing managers ’wages by 10-30 percent.

The federation is the largest sports body in Germany, and according to 2019 figures, it has under its umbrella 7.1 million members.

 

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