Crisis at DSV Leoben: Is there a risk of bankruptcy after the sponsor's termination?

Crisis at DSV Leoben: Is there a risk of bankruptcy after the sponsor's termination?

DSV Leoben is facing a massive financial crisis after the main sponsor TGI AG surprisingly terminated the sponsorship contract without prior notice. This decision hits the football club, which is already in a precarious position, and forces it to consider serious measures to secure its future. “This unexpected decision hits the club in an already difficult financial situation and forces us to examine all necessary measures,” said DSV Leoben in a press release.

Legal steps and restructuring considerations

In response to the termination, legal action has now been taken against former members of the dismissed management. They had responsibility in the club between May and September 2024 and were held responsible for numerous bad decisions that significantly worsened the economic situation of DSV Leoben. Those responsible are also suspected of embezzling club funds. DSV Leoben is currently working with experts on a comprehensive analysis of the situation and is examining the possibility of an orderly restructuring or even an application for insolvency meinkreis.at reported.

This shocking move comes at a time when DSV Leoben is at the top of its game and leads the Regionalliga Mitte after suffering forced relegation last season. However, it remains unclear whether the sponsor's unilateral termination is related to the ongoing investment fraud proceedings against TGI AG and its predecessor company GGMT. Over 21,000 customers are waiting for their funds from “promising gold deals”, while the total damage amounts to more than 34 million euros, as orf.at reported.