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KFW approved VFB Stuttgart loan application

Tue 09 February 2021 | 16:59

VfB Stuttgart club suffered a lot of losses last year and this trend continues, mainly due to the lack of revenue on match days and ticked sales.

The coronavirus pandemic has left several German clubs in dire financial straits. Clubs have never before experienced such a situation that has led some to back down and cut costs, cut wages, lay off employees or apply for loans.

Although the 50+1 model protects clubs from financial deprivation, it does not prevent them from facing difficult situations like the current scenario;

VfB Stuttgart

applied for a loan to compensate for the loss of revenue from the pandemic, which was more than €30 million.

Now, their loan application has been approved by federally-owned German development bank Kreditanstalt für Wiederaufbau (KfW).

According to Stuttgart’s official statement, the five-year loan is tied to other conditions to full repayment and continuous and transparent financial reporting to KFW is also mandatory throughout.

Stuttgart CEO

Thomas Hitzlsperger

has said the club is committed to financially and economically sustainable and transparent operations.

“We would like to express our thanks to those responsible at KfW, the political decision-makers and the representatives of our house banks who have accompanied us on this journey. The additional conditions correspond to the solidarity principle of our association and are at the same time an important signal that we send to politics and society with full conviction: VfB Stuttgart was committed to a more sustainable, solid economy in professional football even before the pandemic and is now and will continue to do consistently in the future,”

he said.

Stefan Heim

, Chief Financial Officer, has vowed to be cautious about using the loan. He said:

“We will use this loan cautiously and with the greatest care to ensure the continued economic survival of VfB Stuttgart. The possibility of making use of it alone creates additional security and the ability to act for us in such uncertain economic times.”

 

 

 

 


source: SportMob