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Editor:
Presscouncil City of Chemnitz
Pressrelease: 771

City council decides on financial support for CFC

At a special meeting on Friday evening, the Chemnitz City Council decided to pay out €1.26 million to Chemnitzer Fußballclub e.V. (CFC), which is apparently in serious financial difficulties.
With the stadium remodelling, the leasehold agreement between the city and the CFC for the old stadium was terminated prematurely. Due to the premature termination, the CFC was entitled to compensation for the loss of so-called land rights totalling EUR 1.26 million. In the regulations agreed by the city council in 2012 between the city and the CFC regarding the stadium conversion, it was agreed that the compensation would not be paid out, but would be reduced by one twentieth per year as the new stadium was used. With the decision taken on Friday, the compensation of 1.26 million euros can be paid out. This will be financed from the city's liquidity reserve.

The payout is linked to the following conditions, which were agreed by the city council:

  • The existence of a consolidation and reorganisation concept for the CFC confirmed by an auditor with a positive going concern forecast.
  • Conclusion of a management contract with performance certificates drawn up by eins energie, valid from 16 December 2016. From 16.12.2016, the organisational phase/transfer begins with the aim of starting operational management by eins energie from 01.02.2017.
  • Declaration by the CFC on the right of the City of Chemnitz or the authorised municipal companies to inspect the books and records of the CFC and its affiliated companies at any time.
  • Written declaration by the CFC to the city to initiate the following structural measures for consolidation and professionalisation:
    • Submission of a current organisational chart and a written allocation of responsibilities/schedule of responsibilities of the CFC's bodies and committees (CFC, CFC Marketing und Stadionbetrieb GmbH, Executive Board, Management Board, Supervisory Board, Honorary Council, Economic Advisory Board);
    • Adjustment of these documents if required by the consolidation concept or the achievement of the positive going concern forecast;
    • The city and eins energie commission an independent auditor to analyse the reasons for the deficit that has arisen, including a comprehensive error analysis, and submit a report by 30 April 2017;
    • Together with eins energie, the CFC examines the qualitative and quantitative personnel requirements and staffing levels. The result is to be presented to the Supervisory Board of the CFC;
    • Conceptualisation and establishment of financial controlling at the CFC;
    • Regular submission of a quarterly report by the CFC and its affiliated companies and discussion at the non-public meeting of the VFA for the duration of the consolidation phase, starting from the first quarter of 2017
    • Results-oriented review of whether and from when the CFC's professional squad will be spun off from the e. V. and can be transferred to another company form (e.g. GmbH);
    • No contracts not agreed with eins or GGG outside of the unavoidable business operations by the CFC or CFC-Marketing und Stadionbetrieb GmbH until eins energie takes over the operational management or GGG takes over the business management.
    • Following a review, GGG will initially take over the management of stadium operations and stadium marketing for the duration of the consolidation, subject to approval, within the scope of the contractual possibilities with the aim of establishing clear financial flows between CFC-Marketing und Stadionbetrieb GmbH and the CFC
    • Letting and thus also opening up the stadium to and for other club sporting and non-sporting activities