DFB history under pressure: Court speaks judgment in the tax process!

DFB history under pressure: Court speaks judgment in the tax process!

In the so-called summer fairy tale process, the German Football Association (DFB) was guilty last Wednesday by a district court in Frankfurt. The court imposed a fine of 110,000 euros against the DFB for tax evasion of around 2.7 million euros, which is related to the 2006 World Cup. The public prosecutor had previously requested a fine of 270,000 euros, with the court ultimately set by 130,000 euros and issued 20,000 euros due to a "constitutional duration of the proceedings". However, these sanctions would be slightly if you look at the high operations and public expectations.

The DFB has always asserted its innocence and argues that the tax authorities ultimately suffered no financial damage; Rather, the state had booked an interest advantage of 650,000 euros. However, this argument is in the context of the fact that the conviction reduces the opportunities of the DFB to a tax repayment of a total of 22 million euros, which has been due since 2017 after the DFB has been withdrawn from the non -profitability for 2006. In the process it became clear that the DFB payment of 6.7 million euros was obscured to FIFA in 2005 as a repayment of a loan. This payment was originally directed to Robert Louis-Dreyfus account and was closely related to a payment by Franz Beckenbauer in 2002.

relationships and allegations

The procedure extended over 16 months and is not only a judicial, but also a social earthquake for the DFB, which was host of the World Cup in 2006. The court found that the evasion of taxes by the DFB is based on high criminal energy. This assessment was supported by the indictment within the procedure, whereupon the DFB top official Theo Zwanziger, Wolfgang Niersbach and Horst R. Schmidt were originally charged. However, the procedure against these officials was terminated against a money requirement because they vehemently rejected the allegations.

With the submission of a lawsuit to the Kassel financial administrative court in 2022, the DFB tries to question the strict conditions for repaying the 22 million euros. However, this lawsuit is still open and the uncertainty about the decision is another challenge for the association.

The conviction in the summer fairy tale process throws shadows on the entire organization. The transparency and responsibility that the DFB owes its members and the public are under the test. Since the discussion about the legal and financial implications continues, it remains to be seen how the situation will develop.