Association financially struggling
Major sponsor brings urgently needed millions to the DFB
May 14, 2024, 7:37 a.m
In terms of sport, the German Football Association has been waiting for success from its most important team for years, and the lack of success is also noticeable financially. Shortly before the home European Championships, there is good news: VW is extending its role as general sponsor.
According to information from the German Press Agency, the automobile company VW remains the general sponsor of the German Football Association (DFB). The contract, which expires this year, will therefore be extended; the term and conditions will be announced at a meeting on Wednesday evening at the company’s branch in Berlin. National coach Julian Nagelsmann will officially present his already known European Championship squad on Thursday in the same location in the heart of the capital. VW and the DFB have not yet wanted to officially confirm the agreement. Recently, details of the new agreement were apparently still being negotiated.
For the DFB, the continuation of the collaboration with the important donor shortly before the home European Championship is another economic success. In March it was announced that long-term supplier Adidas would be switching to Nike from 2027. Although this had caused criticism even in the highest government circles, it is said to have brought the financially struggling DFB a high double-digit million increase in revenue.
The association recently decided, among other things, to sell the old association headquarters in order to raise fresh money. “The income offers the association the opportunity to release liquid funds to repay the loan for the DFB campus,” said treasurer Stephan Grunwald. The construction of the new headquarters cost around 180 million euros, around 30 million euros more than planned. The financial situation was burdened by the men’s national team’s lack of success at the 2018 and 2022 World Cups, the campus project and back taxes of over 51 million euros due to the withdrawal of non-profit status for the years 2006, 2014 and 2015.
DFB President travels to Thailand and hopes to win the World Cup
With the VW deal, the DFB leadership around President Bernd Neuendorf is continuing the recent positive economic news. In addition to Nike, the association also entered into collaborations with the social media platform Tiktok and the financial service provider Klarna.
VW replaced Mercedes-Benz as general sponsor in 2019. The contract had already been concluded in 2017, before the start of the sporting crisis of the national soccer team with the early World Cup failures in 2018 and 2022 as well as the disappointment at the European Championships in 2021. Neither side gave any information about the conditions at the time. According to unconfirmed media reports, 25 to 30 million euros were transferred per year. During the sporting crisis, a contract extension – possibly under different conditions – had been negotiated for a long time.
At the meeting on Wednesday with the VW leadership around CEO Oliver Blume, the DFB will be represented by Völler and managing director Andreas Rettig. President Neuendorf is then already on his way to the FIFA Congress in Thailand. In Bangkok, the DFB is hoping to win the 2027 Women’s World Cup with Belgium and the Netherlands. The favorite for the host role is their competitor Brazil.