Roger Hampel
In a significant stride towards financial stability and operational efficiency, Hertha BSC is poised to achieve a positive operational result (EBITDA) for the first time in years by the end of the 2023/24 season. This accomplishment is part of the club’s comprehensive restructuring and consolidation process, known as the "Berliner Weg" (Berlin Path), supported by the strategic investment and backing of 777 Partners.
Strategic Investments and Cost Management
Under the guidance of Thomas E. Herrich, Managing Director at Hertha BSC, the club has reported a declining trend in expenses, a key highlight from the members' meeting in October 2023. The club's operational success this season can be attributed to rigorous budget controls and cost management strategies that have been effectively implemented. This includes a substantial equity investment from 777 Partners, totaling 75 million euros, which has solidified the financial foundation required for the club’s revival.
The Berliner Weg: A Holistic Approach Hertha BSC
Initiated in the 2022/23 season under the then-presidency of Kay Bernstein, the Berliner Weg not only set a stringent financial course but also marked a significant shift in sports strategy. This new approach emphasizes the sustainable development, promotion, and integration of homegrown talents from the club’s youth academy. Throughout the current Bundesliga season, Hertha BSC has consistently fielded numerous academy-trained players, with eleven such players gaining valuable experience in the professional team.
Economic Turnaround and Community Support
Since the latter half of the 2022/23 season, Hertha BSC has undertaken several steps to drastically reduce its overall cost structure, achieving total savings of over 70 million euros. These savings span personnel and other operational costs. The club anticipates that the financial results for this season will show an overall improvement exceeding 75 million euros, with the operating result expected to be in the single-digit million range.
Despite facing significant financial challenges following a relegation from the Bundesliga, Hertha BSC has received remarkable support from its members and fans. This support is reflected in a record increase in club memberships and merchandise sales. The club also boasts a high average attendance, ranking ninth in Germany and twenty-sixth across Europe, independent of league status.
Ongoing Support from Sponsors and Financial Sector
The commitment to the Berliner Weg is strongly supported by sponsors, partners, and stakeholders from the banking and finance sectors, all of whom have played a crucial role in the club's ongoing recovery efforts. This comprehensive support system has been vital in navigating the challenges and setting the stage for a sustainable future.
Source: Hertha BSC
Comments