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Editor:
Presscouncil City of Chemnitz
Pressrelease: 701

City council discusses support for Chemnitz football club

On 7 December, Chemnitz City Council will decide on financial support for Chemnitzer Fußballclub e.V. (CFC), which is apparently in a serious financial situation. The amount in question is 1.26 million euros. The payment is linked to three conditions:

  • Presentation of a consolidation and reorganisation concept for the CFC confirmed by an auditor with a positive going concern forecast;
  • Conceptualisation and establishment of financial controlling at the CFC;
  • 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.

Only once these conditions have been met - provided the City Council agrees - will a payment be made. The ground lease between the city and the CFC for the old stadium was terminated prematurely with the stadium remodelling. 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 between the city and the CFC on the stadium conversion agreed by the city council in 2012, 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. The CFC has now asked for this regulation to be changed and for the compensation of €1.26m to be paid out instead. This would require an amendment to the city council resolution from 2012. This EUR 1.26 million would be financed from the city's liquidity reserve.

Lord Mayor Barbara Ludwig explains: "I learnt of the CFC's very serious financial situation at the end of October and was shocked. Due to the importance of the club for the city, I nevertheless decided that we would try to help. The settlement of the liability by the city in the amount of 1.26 million euros represents a one-off aid to the club. However, this is linked to conditions, all of which must first be fulfilled. It is important to establish professional structures at the club and to consolidate the economic basis in the long term. This is the basic prerequisite for the sporting success that we all desire. I ask all members, fans, partners and sponsors to support the club in this difficult situation."