FC St. Pauli's Financial Revolution: The Cooperative Proposal
FC St. Pauli, currently cruising through Bundesliga 2, has announced its ambitious plan to enhance its equity and cut losses. President Oke Göttlich revealed this ambition at the club's general meeting, stating that the club is considering the creation of a cooperative.
The idea of a cooperative was inspired by the membership and has garnered support over the past few months. "We're looking at a financing model tailored to FC St. Pauli," says Göttlich. The precise conditions for establishing the cooperative are set to be finalized by the first half of 2024.
Despite being on an upward trajectory post-pandemic, the club endured a €4.9 million loss in the recent 2022/23 financial year. Revenue soared to a record 62 million euros, but FC St. Pauli's CFO Wilken Engelbracht pointed out several factors contributing to the loss, including a deficit of 1.6 million euros from the merchandising division.
The loss was also influenced by outsourced logistics and merchandise management for the merchandising division and reduced income during the fall and winter of 2022 due to the World Cup in Qatar and the team's sporting slump at the time. Engelbracht emphasized that FC St. Pauli does not suffer from a revenue problem; instead, it requires a balance between income and expenditure.
Enrichment Insights:
FC St. Pauli is actively pursuing the formation of Football Cooperative St. Pauli von 2024 eG, considering shares at €750 each, with a €100 subscription and administration fee[1]. The club seeks to raise up to €30 million through share sales, with discontinuation once €36 million is reached.
The funds will be allocated to secure a majority stake in the Millerntor stadium operating company and service any outstanding loans, notably stemming from new stadium construction and the post-pandemic period[1]. In this democratic cooperative model, each member retains one vote, irrespective of the number of shares owned, ensuring equal representation in line with FC St. Pauli’s commitment to community engagement[1].
In a broader market context, FC St. Pauli's cooperative strategy signifies an attempt to mobilize financial support directly from its dedicated fanbase, lessening reliance on external investors and cultivating a more sustainable financial future.
[1] IBID [2] This section contains enrichment data not collected during the base article analysis, but is relevant to the topic and provides context that improves readability and comprehension.
