News from the FC Bayern Munich Annual Meeting
By: Luke | November 27th, 2009
*With 99% of the vote, Uli Hoeness was elected President of the club, succeeding Franz Beckenbauer, who has the held the title for the last 15 years. Both men received rousing ovations from the crowd. A farewell match in Beckenbauer’s honor will be played this coming August at the Allianz Arena between Bayern Munich and Real Madrid.
*Karl-Heinz Rummenigge announced that Toni Kroos will return to the club next season.
Key financial figures revealed.
For FC Bayen Munich A.G.
Turnover €303.8 million
Operating profit (EBITDA) €65.5 million
Earnings: €12.1 million
Net profit before taxes €1.2 million
Net profit after taxes €2.5 million
The net profit after taxes is not a typo. Karl Hopfner remarked that it was an effect he had “not experienced before”. The complications in the figures can be assumed to result from the subsidiary Allianz Arena München Stadion GmbH which continues to operate at a loss. The after tax profits represent a nearly 20% increase over the previous season.
*Hopfner detailed the Audi stock purchase, which will take place in 3 stages between spring 2010 and March 31, 2011. Audi’s stake in the club will be equal to Adidas’, 9.09 percent. This amounts to 2 million shares at total price of €90 million. Hopfner added that €163 million of the €346 milllion sum spent to build the Allianz Arena has been repaid. Hoeness had previously stated that the lion’s share of the Audi cash influx will be used to defray costs associated with the debt incurred on the stadium construction, which published reports estimate at €30 million per year. The pay off of stadium debt is seen as the key to long term growth for the club, as the stadium is the only part of the club that runs at an annual loss.
*The take from last year’s Champions League run was estimated at €44,650,000. This puts in perspective how important the Juventus match will be.
*Rummenigge brushed aside any critique of the club’s transfer policy and indicated that once Ribery and Robben returned to health, we would see a “different team”.
*The largest protest from the members seemed to occur when the rent dispute with 1860 Munich was mentioned by Rummenigge. FC Bayern Munich has already filed suit against 1860 for non-payment of rents under the 2006 agreement that allowed 1860 to remain at the Allianz Arena as tenants.
A video of the full proceedings can be found here
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Tags: 1. Bundesliga, 1860 Munich, Allianz Arena, Arjen Robben, Audi, Champions League, FC Bayern Munich, Franck Ribéry, Franz Beckenbauer, Karl Hopfner, Karl-Heinz Rummenigge, Real Madrid, Toni Kroos, Uli HoenessSubscribe
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Comments | Add your comment
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why should 186o pay a rent ,don’t they both own the stadium ?
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United States
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Luke, do you know who the Bayern accountants are? Given their Net profit *after* taxes is greater than their Net profit *before*, maybe I can use their expertise to help with mine in a few months…
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United States -
Shadi: Originally, the teams co-owned the stadium. In 2006, 1860 Munich was facing insolvency, FC Bayern agreed to buy 1860’s interest in the stadium for €11 mil. 1860 then had the option of buying back their half for that cost plus interest up through 2010. It’s generally thought 1860 would have been denied a license had FC Bayern not stepped in at that time. In 2007, a new rental agreement was established and 1860 lost the buy back option in exchange for what FC Bayern considered a “sweetheart deal” on the rent. The current dispute appears to stem from 1860’s inability to fill the “skyboxes” and therefore pay their associated per game costs, but I have not seen the court documents. 1860 publicly floated the idea of leaving the Allianz, and FC Bayern indicated it would seek damages under the lease agreement if they left early. FC Bayern views 1860’s actions as ingratitude. So if they can’t feud on the field, they’ll do it off the field.
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United States -
If you have subsidiaries operating at a loss (or the parent company) you will get a tax credit. Also, you may have tax credits from prior periods when operating at a loss and those could have been utilized this year.
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United States -
Yeah, my previous post might sound like it, but I didn’t mean to call Luke out at all. I figured as much with the tax credit etc., but in my drunken state (given the time of year in NCAA football), decided to post anyway. Never a good idea…
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United States -
Well, for my part, I couldn’t explain those numbers, (Hopfner didn’t elaborate) but I guessed it had something to do with Allianz Arena subsidiary. So, no offense taken at all A Kap, and thanks to Shane for the explanation.
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United States -
1860 has to pay a rent because they sold their 50% ownership to FC Bayern Munich but they have an option to buy back 50%.
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United States -
@AGT It was my understanding that the buy-back option was part of the original deal, but that 1860 then resigned that right a year or so later. I’d have to do some digging to find the reporting on that–maybe there was some incentive for them to do that, but I doubt whether it was realistic that 1860 was ever going to be able to afford to buy back their shares (plus interest) anyhow.
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United States
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