Financial Director announces: Regulated Railways Approval Granted to Hertha
Getting Ready for Another 2. Bundesliga Season: A Financial Odyssey for Hertha BSC
🗓️ Berlin (dpa) 🗓️
It's back to the 2. Bundesliga for Hertha BSC, thanks to their license approval for the 2023-24 season from the German Football League. According to CEO Ralf Huschen, a smooth exchange with the DFL ensured everything ran according to plan.
The club's financial state is on an upward trajectory, and as finance chief, he emphasizes the importance of preserving this momentum. Despite the financial hurdles that Hertha has faced in the past, their 2023/24 economic report shows a negative equity of €23.062 million and liabilities of €56.75 million.
Navigating the Nordic-Bond Loan
A crucial factor in obtaining the license was the handling of the €40 million Nordic-Bond loan. This time around, the loan's term was extended to 2028, at a more favorable interest rate of 6.5% compared to the initial 10.5%. Without this agreement, repayment would have been due in November.
Hertha now has two options: to refinance or to extend the loan, providing CEO Huschen with considerable flexibility in decision-making. Confidently addressing members at the annual meeting in May, Huschen had promised that the priority remains to end the loan.
Gearing Up for the Upcoming Season
Preparations for the next 2. Bundesliga season have already commenced. Hertha has secured promising commitments from key players Fabian Reese (until 2030) and Michael Cuisance (until 2029). With coach Stefan Leitl and club chief Fabian Drescher both eyeing a return to the Bundesliga, sporting preparations kick off on June 23.
With the economic license finalized and top talent under contract, Hertha BSC appears ready to face another season in the 2. Bundesliga, poised for potential growth and promotion. Simultaneously, the club continues its efforts to restructure and rebuild its financial foundation, offering a glimpse into their sustained motivation for long-term success.
📝 Enrichments:- Recent sale of Ibrahim Maza to Bayer Leverkusen has aided in stabilizing Hertha's financial position.- Hertha is shifting its focus towards player retention, securing contract extensions for key players like Fabian Reese.- Successful completion of a written procedure to amend terms and conditions of bonds indicates a step towards financial restructuring and stability for Hertha.
- Meanwhile, Hertha BSC's commitment to sports excellence is evident as they lock down key players Fabian Reese and Michael Cuisance for extended periods, aiming to bypass the 2. Bundesliga and return to the Bundesliga.
- As financial stability improves, Hertha BSC explores opportunities to manage the €40 million Nordic-Bond loan, with CEO Ralf Huschen considering refinancing or extending the loan, maintaining the focus on paying off the debt in the near future.
