TSV 1860 Munich: Rumors about bankruptcy - what is really behind it?

TSV 1860 Munich: Rumors about bankruptcy - what is really behind it?

Giesing, Deutschland - In Munich it is bubbling! The headlines about the impending bankruptcy of the professional football subsidiary of TSV 1860 Munich cause excitement. But what feels like a explosive urgent message could actually only be an old hat. The reporting seems to recycled annual practice, which has recurred since the club's sporty descent from the 2nd Bundesliga in 2017. The association, which has been playing in the regional league Bavaria since then, is over -indebted and has to present a continuation forecast annually that ensures the economic survival for two years.

The partner Hasan Abdullah Ismaik and the managing directors he used have driven the club into the red. The expensive Allianz Arena in Fröttmaning, which is unprofitable for a second division club, additionally stresses finances. The situation is no secret and can be understood in the balance sheets of the association. Since then, Ismaik, who started the club with a large brimborium in 2011, has mainly invested through loans. When the association was unable to raise financial security for a third division license in 2017, this led to the forced descent into the regional league.

The financial situation of TSV 1860 Munich

Since then, the association has taken a consolidation course among the new representatives around Robert Reisinger. The galloping new debt was stopped and the annual losses have dropped. From 2011 to 2017, the loss of balance sheet rose to almost 63 million euros, while the debt increased only by around 8 million euros between 2017 and 2022. Corona pandemic was another threat because the association did not receive government aid because it was already in financial difficulties.

Despite the tense situation, TSV 1860 Munich does not necessarily have to register bankruptcy as long as there is enough liquidity. Hasan Ismaik, who holds 60 percent of the shares and is the greatest creditor of the company, has a strong interest in avoiding bankruptcy, as this would devalue its shares. President Robert Reisinger calms down the minds and confirms that Ham International will meet his obligations. At the same time, the mother association finances the training in the club's youth performance center.