How did Kind manage that?

How did Hanover 96 score such a sweet deal?

At face value, it seems like an unbelievable steal.

The city of Hanover's World Cup arena, boasting a whopping 49,000 seats, along with the massive training ground, spanning a total of 105,000 square meters right smack dab in the city center on the Maschsee. And for a mere 27,479.14 euros and 14 cents. Not per month, per year!

That's what the proposed lease agreement between the city of Hanover and Bundesliga 2 club Hannover 96 states. The agreement has already received a green light from the city council and the municipal supervisory authority of the Lower Saxony Ministry of the Interior.

The announcement for the signature of the new lease agreement, extending until 2096 (!), is set for the following week.

In response to inquiries, the city announced: "The municipal supervisory authority holds no objections to the stadium contract. Specifically, the Ministry of the Interior aligns with our legal opinion on key aspects: The ground rent amount is considered appropriate (...)"

26 cents per square meter!

The Taxpayers' Association (BdSt) isn't the only skeptic. "Despite the already given political approval, the new lease agreement shouldn't be given the green light," BdSt regional chairman Bernhard Zentgraf cautioned months ago, and called for an "independent expert opinion."

It's worth noting that Hannover 96, with a multi-million euro turnover, pays just 26 cents per square meter, the same rate as registered amateur sports clubs in Hanover, which are funded through membership fees.

So, how did Hannover 96 convince the city?

Even the Ministry of the Interior admitted, "If considering only the raw ground rent of 27,479.14 euros, questions may arise as to whether this adequately represents the full value of the transfer of use."

Furthermore, "Hannover 96 Arena GmbH & Co. KG" — owned by Martin Kind (79), Dirk Roßmann (77), and Gregor Baum (57) – is not the e.V. or the professional company; instead, it's a contractual partner of the city. The professional company pays 5.1 million euros annually in rent to Arena GmbH so that Halstenberg & Co. can play there.

The unusually long lease term until 2096 and the haste with which the new lease agreement (with a current lease expiring in 2030) was pushed through have also been criticized. However, these factors did not impact the Ministry of the Interior's assessment.

It should be noted that the annual operating cost subsidy of €850,000 from the city to Arena GmbH will be abolished in the new contract from 2030. Additionally, the Kind company must maintain and modernize the arena and operate it in a climate-neutral manner by 31.12.2035.

And the city has the right to terminate the contract in the event of breaches of contract or obligations and potentially in the event of a change of ownership.

1. Despite the approval of the city council and the municipal supervisory authority, the Hanover regional chapter of the Taxpayers' Association question the lease agreement between hanover and Bundesliga 2 club Hannover 96 for the city's World Cup arena.
2. The new lease agreement, set to be signed in the coming weeks, grants Hannover 96 access to the stadium until 2096, paying just 26 cents per square meter in ground rent, a rate identical to that of registered amateur sports clubs in Hanover.
3. German sports outlet Regio Sport Hanover reported on the controversy surrounding the lease agreement, emphasizing that the professional club Hannover 96 boasts a multi-million euro turnover, while the city continues to provide an annual operating cost subsidy of €850,000.
4. In its assessment of the lease agreement, the Lower Saxony Ministry of the Interior acknowledged that the low ground rent of €27,479.14 raises doubts as to whether it accurately represents the full value of the transfer of use.
5. According to local sources in Hanover, the millionaire-owned "Hannover 96 Arena GmbH & Co. KG" will be responsible for maintaining and modernizing the arena and ensuring climate-neutral operation by 2035, under the new lease agreement.
6. Following the criticism of the excessive haste with which the new lease agreement was finalized and the unusually long lease term until 2096, the city has included a right of termination in certain circumstances, such as breaches of contract or obligations and potentially in the event of a change of ownership.

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While the article does not explicitly state how Hannover 96 managed to secure such a low ground rent, it suggests that a number of factors may have contributed to the agreement, including the "contractual partnership" between the city and Hannover 96 Arena GmbH & Co. KG. Additionally, the city has stipulated that the Kind company will maintain and modernize the arena, as well as operate it in a climate-neutral manner by 2035, in the new lease agreement. The parking of operating cost subsidies and the right of termination in certain circumstances may also have played a role in the negotiations. To gain a comprehensive understanding of the specifics of the lease agreement between Hannover 96 and the city of Hanover, additional research would be necessary to examine the contractual details and the circumstances surrounding the negotiations.