Handball Bundesliga: Will 66 Minutes Decide HSV's Fate?
Handball drama featuring licenses. - Can 66 minutes determine HSV's descent to lower leagues?
Intriguing developments are brewing within the Handball Bundesliga as the fate of HSV lies in the hands of the HBL Arbitration Court. The speculation rages on with numerous questions, rumors, accusations, and conspiracy theories swirling around the situation. To clear up the confusion, we've answered some of the most significant ones.
Is HSV doomed for relegation?
Not yet. The HBL Arbitration Court will unveil its final decision on whether HSV will retain its first division license for the 2024/25 season on May 30, three days before HSV's last game of the season.
How financially strapped is HSV?
The licensing commission uncovered a concerning liquidity deficit of €4.1 million. This amount was unexpected, as officials at HSV had envisioned covering a lower amount with pre-established investor and sponsor contracts. Additionally, liability issues from the current season imposed further pressure on the Hamburg team.
What role does Bergischer HC play in all of this?
Bergischer HC, a league rival, desired to intervene in the licensing process. Fearing that HSV could be granted a license despite significant financial shortages, BHC took legal action. In an interview with Dyn, BHC manager Jörg Föste shed light on the situation: "We thought that one of the 36 clubs seemed to be stretching the system too much - no more and no less. We made our concerns heard as the ones immediately affected. That's our right as a club and our responsibility as management."
Is it fair for HSV to be relegated over a 66-minute time gap?
In a legal sense, yes. Although the deadline was missed by a minute or a week, the significance lies in the actions of both parties. HSV requested one of its employees at Hamburger Volksbank to contact the licenses commission right before the deadline at noon on May 3. At 11:55 a.m., the Volksbank employee contacted a commission member, expressing regret over not having confirmed the receipt of the funds or the authority of HSV Hamburg to dispose of that sum.
Does HSV have a case for retrieving its license?
Potentially, but it's not a certainty. HSV transferred €4.1 million from investor Philipp J. Müller on May 2, and sent a transfer order to the HBL on Thursday. However, the league needs more certainty as false documents can also be produced. When asked about the potential restoration of HSV's license, the HBL responded: "The license granted to HSV Hamburg by a letter from the Licensing Commission dated 17.04.24, subject to the fulfillment of a condition with a deadline of 03.05.2024, 12 noon, was not fulfilled by the end of the deadline. This would have required proof that the significant liquidity gap identified had been covered in the form of bank guarantees or by submitting bank balances to meet the condition. HSV Hamburg did not provide the evidence necessary by the specified deadline."
How dire is HSV's financial state?
While HSV had plans in place to render the club debt-free by 2025, the strict requirements of the licensing commission disrupted these plans. However, with €4.1 million invested by Philipp J. Müller and an additional one million euros to spare, HSV is currently debt-free and holding a surplus. Nonetheless, existing liabilities of nearly €3 million from HSV's rise to glory between 2021 and 2022 and a deficit of €1,754,757.79 during the past financial year underscore the team's financial instability.
Is HSV living beyond its means?
HSV's financial situation has been and remains volatile. The club's rapid promotion prompted expenditures well beyond its means, while a faulty roof at their previous sports hall forced a lengthy closure.
In the 2021/22 financial year, the annual financial statements declared a deficit of €1,754,757.79, not adequately covered by equity. The club cited "expected investment needs" arising from its rapid promotion. This unstable situation aims to achieve a first division license without any conditions.
In summary, it's safe to say that HSV's financial predicament is tense, and the outcome of the HBL Arbitration Court's decision on May 30 will shape its future in the Handball Bundesliga.
The article in the "Hamburger Abendblatt" newspaper states that the expenses for the current season total 5.8 million euros. This includes 3.1 million for the team and coaching staff, comparable to teams like Wetzlar, Lemgo, or BHC. Notable players like goalkeeper Jogi Bitter (41) and goal scorer Casper U. Mortensen (34) accepted salary reductions to move to HSV and remain closer to their home countries. Furthermore, 1.1 million euros are allocated for match operations, covering hall rental, among other costs.
What's more, personnel changes could be on the horizon. Tension is building behind the scenes as Marc Evermann, the club's president and shareholder, decided to retain vice-president Martin Schwalb despite the supervisory board labeling his consultancy contract as extravagant. Reports suggest that Schwalb was paid around 200,000 euros annually. His contract had been inactive for over a year and is now terminated. There are whispers in the handball community that investor Müller could be tying his financial support to HSV's improved efficiency, without Schwalb.
Frecke, the general manager, also faces scrutiny. Within the club, many people are questioning how treasurer Stephan Harzer didn't caution about the dire economic state sooner.
Should HSV not receive a license, the 40 employees (composed of players, coaches, and office staff) would be out of a job. It's highly unlikely that HSV would compete in the 2nd Division, while the 17th-placed BHC and 17th-ranked Vinnhorst would be spared. In an attempt to carry on, Hamburg has submitted an application for a license for the 3rd League; however, they could even join the 4th League if their second team is active.
It's almost certain that Bergischer HC will file a case against HSV, given their historical example in 2014 when the predecessor club was awarded a license in the third appeal. Balingen had likewise been relegated and took legal action. They succeeded in their endeavor, forcing the HBL to be played with 19 teams the following year. Consequently, several fans have speculated that a similar situation may arise once more.
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Source: symclub.org
