Werder Bremen's Finances in Question
Introduction
The 2022/23 financial year for Werder Bremen didn't exactly bring forth a smile, but it wasn't the end of the world either. The club, following their promotion, closed the season with a loss of €3.8 million, a far cry from the €6.3 million profit they recorded in the previous year. Klaus Filbry, Werder's boss, disclosed these figures during their general meeting held at the Werder-Halle. With a total loss of €17.8 million and negative equity, the situation was undeniably challenging; however, Filbry believed the calculated risk they took helped secure their spot in the league.
The Culprit - Personnel Expenses
Personnel expenses emerged as the biggest cost driver, accounting for €57.2 million of the club's spending. Out of this, approximately €40 million would be allocated to the professional budget, with the bulk ($35 million) used to pay the players' basic salaries. Whilst in the second division, these figures amounted to only €43.8 million. The increased budget was primarily due to the return of the professional footballers, whose weekend off on Filbry's request sparked grumbles from about 199 of the 48,578 members present.
A Struggling TV Table
Werder Bremen had suffered a significant drop in their position, plummeting from 12th to 17th place in the TV table due to relegation. The impact was dire, as the income generated from it decreased from €60 million to €38 million. However, the club remained hopeful, with TV income projected to rise by €6 million in the coming year due to the anticipated successes of their players – including Füllkrug.
The Search for a Strategic Partner
Despite the losses, there was a glimmer of hope. Werder Bremen had yet to find a "strategic partner" to help alleviate their financial trouble and drive them towards sporting success. Despite the club's appealing market and rich history, no investor had shown interest in purchasing shares or lending a helping hand. Hubertus Hess-Grunewald, president and chairman of the Supervisory Board, emphasized their preference for a long-term partnership. The absence of such a partner might result in challenging competition with other clubs and hinder the club's strategic development.
Enrichment Insights
- Revenue Shortfalls - The relegation to the 2. Bundesliga led to lower broadcasting rights, sponsorship deals, and ticket sales. Werder Bremen had to rely on short-term loans or free transfers due to transfer market constraints.
- High-Risk Match Fees - The state of Bremen imposed substantial fees due to high-risk matches, which added to the club's financial burden. The regulation, known as the "Lex Werder," required event organizers to pay for additional police protection.
- Strategic Transfers - Werder Bremen could benefit from strategic transfers, as demonstrated by the recent acquisition of André Silva on a short-term loan from RB Leipzig. This move addressed immediate needs without the burden of a substantial transfer fee.
- Revenue Optimization - Optimizing revenue streams could positively impact Werder Bremen's finances. The club could explore more effective commercial partnerships, ticket sales, and digital presence to boost their income.
- Financial Management - Effective financial management is critical to balance the club's spending on player transfers, wages, and infrastructure while addressing high-risk match fees and other financial obligations.
- Youth Development - Investing in youth development programs could significantly reduce reliance on expensive transfers. Developing homegrown talent would bolster the team without the distraction of high transfer fees.
By addressing these financial challenges through strategic transfers, revenue optimization, effective financial management, and investing in youth development, Werder Bremen can potentially stabilize their financial situation and improve their performance in the Bundesliga.
