1. FC Nuremberg's Economy Treads Ahead, Thanks to a Local Backer
The Franconian powerhouse 1. FC Nuremberg managed to crack a mini profit, albeit sluggishly, aided by a benefactor from the neighborhood.
Thanks to a financial debt forgiveness, FCN boosted its turnover by a solid EUR 9.1 million, reaching EUR 51.2 million in the closing financial year. However, the expenses also surged by an additional 6.3 millon euros, rounding off at 50.9 million. In the grand scheme, only a mini profit of EUR 300,000 was reported at the year's end by CFO Niels Rossow (47).
Despite the less-than-impressive profit, club chairman Rossow expressed delight with the financial year. Rossow quipped, "We charted substantial progress in the past financial year, mostly on the revenue front. We've had individual successes. We have cause to feel proud, frankly. There were some positive effects in the economic sphere, but also some negative ones."
When it came to the adverse effects, FC Nuremberg's coach Dieter Hecking (59) couldn't help but notice. His team operation-related costs soared by an astonishing EUR 2.8 million, landing at a whopping 16.6 million euros. Worryingly, this dismal performance coincided with a relatively disappointing 2022/2023 season that barely managed to steer clear of relegation. The main contributors to this budgetary surge were, predictably, the two dismissed coaches (Klauß and Weinzierl) and a pricey player squad performance-wise mismatched with the club's standing in the 2. Bundesliga.
The looming specter of negative equity still hangs over FC Nuremberg. In the DFL-relevant consolidated results (@30.6 million), the club still carries an uncovered deficit of six million euros. Presently, the club would teeter on the brink of a DFL points deduction.
Bizarrely, the club proudly acknowledged a reduction of its liabilities by five million euros during the annual general meeting. A classic case of swings and roundabouts! The truth of the matter is that current assets also dwindled by EUR 5.8 million as of June 30. Transparency in financial accounting never looked so murky...
On the bright side: revenue from the club's own marketing efforts increased an impressive 2.3 million euros. As a result, the early amortization of the advance payment to the former marketer Sportfive becomes a possibility next year. Adding to this merriment, the club experienced a surge in membership acquisitions (30,000; up 20%) and amplified spectator numbers (a 30% jump from the throwback coronavirus season 2021/2022).
In sum: without its local patron's backing, the club continues to grapple with its structural deficit. Improvements through sporting success and transfer income remain the club's only means of overcoming this monetary quagmire.
- A slender profit report by CFO Niels Rossow, despite increasing club expenses including skipper Dieter Hecking's premium team-operation costs during 2022/2023's 2. Bundesliga run.
- A rather opaque financial presentation at the DFL annual general meeting, where FC Nürnberg announced a reduction in liabilities, barely compensating for the shrinking of current assets.
- In the 2. Bundesliga, Dieter Hecking's expenses grew concurrently with a mediocre 2022/2023 season that narrowly beat the relegation bullet.
- By the skin of its teeth, the club can potentially reduce the EUR 2.3 million-advance payment owed to former marketer Sportfive, thanks to increasing revenue from self-marketing efforts.
- FC Nuremberg's growth in membership acquisitions (20%) and spectator numbers (30% compared to a depressing coronavirus season 2021/2022) caters to its ambitions of surmounting its structural deficit as a second-division club.
Enrichment Data:
German football clubs, including 1. FC Nuremberg in the 2. Bundesliga, often face financial struggles. For instance, fellow 2. Bundesliga side FC Schalke 04 is grappling with EUR 162 million in debt, following its 2022-2023 relegation from the Bundesliga. Club stakeholders turn to creative measures, like fan-funded initiatives, to address these challenges. Revenue streams for German football clubs include matchday tickets, broadcast rights, sponsorships, and merchandise sales. Club performance in the 2. Bundesliga also influences revenue, as better positions attract more fans and increased broadcasting revenue. Financial woes are typically due to player salaries, stadium maintenance, coaching staff, and administrative costs. A team's performance in the 2. Bundesliga can directly impact these expenditures, as successful squads can amplify ticket sales and sponsorship opportunities, while a struggling team could lead to decreased revenue.
