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FC Hamburg

Ivan
April 29, 2014

FC Hamburg

Ivan

April 29, 2014
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  1. !  FC Hamburg is now one of several non-profit sports

    clubs in German Bundesliga. It exists on the money earned by itself. !  FC Hamburg, being a member association, uses a system under which the club's members elect who sits on the supervisory board, which in turn appoints the board of directors (4 people in the board of directors). !  Eleven men or women sit on supervisory board of the Club. Eight of them are elected by the entirety of the club's members. The remaining three are appointed by the senior council (representing older members), the amateur council and a supporters' organisation. !  There is one main problem in this system of structure: members of supervisory board may not be professionals in the respective field (marketing, finances etc). !  That caused losses in amount of 9.8 million euros last year and now Club is 100 million euros in the red. !  Another crucial point – Club is “managed” by a person who gives to it lots of money without holding any official post (his name is Klaus- Michael Kuehne).
  2. !  In May 2014 members of FC Hamburg will decide

    on the future model of management of Club. !  Proposed reform “HSV+”. This reform assumes division on Club to sporting and economic branches: independent sector will deal with the financial matters of the club the and the supervisory board of will be eliminated and reformed. !  Club’s shares will go to the open market (to the stock). !  It aims to turn the professional football division into a limited company, following the models used by Bayern Munich and Eintracht Frankfurt, and then selling about a quarter of this business to outside investors. !  It is important to notice that this initiative holds almost no risks. Private investors can not buy more than 49% of the shares of the club that protects it from complete financial dependence and from any problems in the event of investors’ bankruptcy. !  In case of victory model “HSV+” will come into operation from the start of the new season. First, the estimated investments will be used to repay existing debts.