Kaiserslautern seeks financial consolidation

The Bundesliga club appear to be on the way to solving their financial crisis after announcing profits of EU 1.8m for the 2004/05 season, compared to EU 6.9m losses in 2003/04. While turnover rose from EU 34m in 2003/04 to EU 37.8m, the club managed to reduce costs for players to EU 17.3m – approximately half the amount spent three years ago. The imminent threat of bankruptcy therefore appears to be over but the club remains in a difficult financial position and is hampered by one of the Bundesliga’s smallest budgets.

At the end of 2002, the four-times German champions were rocked by a financial scandal as charges of tax evasion and illegal earnings forced the old board to resign. Only a rescue package put in place by a newly-elected administration, which included significant cuts in players’ wages, the EU 59.7m sale of the Fritz-Walter-Stadium and the youth academy and public loans, ensured the survival of the cash-strapped club.