374 million euros invested
Windhorst admits loss of millions in Hertha sale
07/24/2023 3:03 p.m
He promises to turn Hertha into a “big city club”. In 2019, Lars Windhorst invested several hundred million euros in the football club. But nothing comes of the big plans and soon a private equity group buys his majority stake – for far less than he paid for it.
374 million euros: That’s how much Lars Windhorst has invested in the Berlin soccer club Hertha BSC since 2019. In 2022, he then sold his majority stake to the private equity group 777 Partners in one fell swoop. The sale price was not made public at the time. As the “Financial Times” reports, Windhorst now admits at a court hearing in London that he only gets 65 million euros for his Hertha shares.
At the hearing, Windhorst was cross-examined about his financial situation. Previously unknown details of the sale of Hertha BSC to the US company came to light. According to Windhorst, the equivalent of 15 million euros will be paid for the sale. 50 million euros were offset against a loan that 777 had previously granted him.
Part of the agreement is also a “success-based” payment of up to 35 million euros, which could be due in the future. Under what conditions, Windhorst did not explain. He also said that the private equity group has not yet paid the full €15 million. He can’t remember how much has come in so far. Before the London Court of Justice, Windhorst denied that 777 had defaulted on the contract as a result. “From my point of view, there was no delay in payment,” said the German entrepreneur. He had agreed to defer part of the payment so that he could later receive a “three-digit” million amount from the sale.
Windhorst could not explain how this is possible when the performance-related additional deal provides for a maximum of 35 million euros. He was “not up to date” on the details of the deal, noting that he “personally conducts many transactions.”
Windhorst first invested in Hertha BSC in 2019, at a time when he was still receiving large sums from French H2O Asset Management. He promised high investments to transform the ailing club into a “big city club”. But after Windhorst’s purchase, the situation on the field did not improve. His tenure was overshadowed by various disputes with the club’s management. Last but not least, revelations by the FT showed how deep the rifts were between Windhorst and the club leadership: According to research by the British newspaper, Windhorst had commissioned an Israeli security company to organize a campaign to dismiss club president Werner Gegenbauer.