German Football Association
Campus and Nagelsmann salary: The DFB and its finances
The DFB campus costs the association a lot of money every year. photo
© Arne Dedert/dpa
A fired national coach, an expensive campus in Frankfurt and constant trouble with the authorities: finances are a constant hot topic for the DFB.
Rudi Völler was doubly grateful to Julian Nagelsmann. On the one hand, that the new national coach did not accept the “incredibly good offers” from top European clubs in the summer. On the other hand, that – in Völler’s eyes – it was probably not an incredibly good offer from a financial point of view DFB directly accepted as national coach.
“It’s also an economic decision. He was incredibly accommodating to us. That wasn’t what we expected,” said a surprised Völler, looking at the dramatically tight finances.
The DFB on Sparkus
The DFB has to save money – including on the salary of its most important employee nine months before the home European Championship. President Bernd Neuendorf also admitted this without further ado. The financial framework “of course played a role” in the Nagelsmann commitment, Neuendorf added. “This is all fed back to the treasurer. There was the impression that we remained within a framework that was tolerable.” Nagelsmann’s predecessor Hansi Flick had also signed until the home European Championships, but nothing is known about the termination of the contract.
The DFB campus in Frankfurt is symbolic of the financially struggling association, which was not only completed much later than planned during the difficult Corona period – but also ended up costing 180 million euros instead of the announced 150 million euros. The DFB currently expects a deficit of 15 million euros in terms of planned sales revenue and planned expenses for the coming European Championship year 2024. DFB treasurer Stephan Grunwald said this in response to a dpa request before the association’s extraordinary Bundestag this Friday.
Following the departure of Flick and former director Oliver Bierhoff, the DFB is continuing to recruit among the sporting leadership team. In addition to Nagelsmann, who is committed until 2024, Andreas Rettig is also the new sports director. “The situation is economically challenging and sportingly difficult, but with bright spots,” said Rettig, whose position is initially limited to the end of 2026. When introducing himself, Rettig said about the wrong paths on the huge campus in Frankfurt’s Niederrad district that he initially got lost on the way to breakfast. “I hope I get my bearings quickly.”
New basic contract should help
This is also needed financially. The new basic agreement between the German Football League (DFL) and DFB, which is valid until 2029 and should be confirmed on Friday, should help. “The new basic agreement ensures the financial stability of the DFB and the regional and state associations,” said Grunwald. “The funds can be used to finance important measures and projects in amateur football.”
The DFL will pay the DFB between 34.5 and 39 million euros per season instead of the previous 26 million euros. In return, the DFB will only pay 12.5 million euros instead of the previous 20 million in order to be able to advertise with the clubs’ national players.
The financial situation at the DFB has been tense for a long time. In the latest financial report for 2021, the association recorded a loss of 33.5 million euros due to necessary tax provisions; in the past few weeks, measures to reduce the existing structural deficit to the current 4.5 million euros were decided. The DFB was deprived of its non-profit status for 2014 and 2015. The tax authorities had already revoked the association’s non-profit status for 2006 in 2017.
Changed advertising value of the national team
Added to this is the sporting decline of the national team, which recently botched three tournaments in a row and wasted its planned bonus income. The advertising value of the team, which became world champions in Brazil in 2014, is now likely to be different. Negotiations are currently underway with partner VW to extend the contract, which is dated until 2024. Both partners are sitting at the table with difficult financial backgrounds. “VW and DFB are aiming to extend the partnership. We are in good discussions,” said Grunwald. A conclusion is expected this year.