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Sport Emergency aid from the state: professional sports receive 200 million euros in support

20:55  30 june  2020
20:55  30 june  2020 Source:   tagesspiegel.de

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The federal government is helping the top leagues in basketball, handball, ice hockey and volleyball with 200 million euros to secure the future of sports clubs.

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The top leagues in basketball, handball, ice hockey and volleyball as well as the 3rd football league can look forward to the start of the next season with greater confidence. They receive emergency aid of 200 million euros from the federal government. The working groups of the coalition groups agreed on Tuesday, as CDU politician Frank Steffel told the German Press Agency.

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"I have great hope that in most leagues all clubs will survive the coming season under difficult conditions and that we will not be faced with bankruptcies in the current season," said the initiator of the aid package, which is to be adopted on Thursday in the Bundestag.

The 3rd soccer league also benefits from the aid package

Emergency aid provides that the missing audience revenue will be reimbursed in the months of April to December 2020 with 80 percent of the net proceeds after deduction of sales fees and VAT. A club could receive a maximum grant of 800,000 euros if it had last had more than one million in audience revenue. "If a club had had 100,000 euros in revenue, it would have received 80,000 euros," explained Steffel, who is honorary president of the Reinickendorfer Füchse sports club in Berlin .

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The 3rd soccer league for men can also benefit unexpectedly from the emergency package. Without this help, clubs from small and medium-sized cities, especially in the east of the country - despite considerable salary reductions - would expect significant bankruptcies, said Steffel. This was made very credible. "But there was a political discussion about the very difficult communication of the 3rd league, which has disputed a lot with each other," said Steffel. It was initially unclear whether the women's Bundesliga could also access this money pot.

The third division clubs should not be punished for having acted inappropriately. "If the clubs in Halle, Magdeburg or Chemnitz, Dresden or Rostock were gone, the same applies as elsewhere: Then they won't get on their feet," said Steffel.

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In addition to the clubs from the first two federal leagues in basketball, handball, ice hockey and volleyball plus the 3rd league in football, sports associations could also receive donations from this pot in special cases. For example, in the event of loss of revenue when hosting a final four tournament in a German cup competition or international matches.

"I assume that all clubs that have paying spectators will benefit from this package," said Steffel. "We are also making a significant contribution to licensing because ticket revenue is a relatively large part of the licensing process." Seriously, many clubs could not have been granted licenses for the coming season.

"I have great hope that in most leagues all clubs will survive the coming season under difficult conditions and that we will not be faced with bankruptcies in the current season," said Steffel. He was grateful that the coalition partners and the budget committee had followed his initiative: "This is an important contribution by the federal government to preserving decentralized professional sport and many lighthouses of sport."

Whether the money will be enough to help the top leagues through the corona crisis bringing it is not necessarily safe for him. Steffel: "If there are still massive restrictions in the league in the second half of the league - which I unfortunately assume - then we will have to talk about whether the funds have to be increased." (Dpa)

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