Herrich, the CEO, speaks at the MV gathering. - Hertha faces potential loss of 24.9 million euros once more.
"We've managed to cover our expenses once more, but we need to stay the course and methodically continue with budget consolidation. Otherwise, we might face some financial troubles down the line."
This was the message from Thomas Herrich (60), Hertha's business manager, at their members' meeting. But, despite this positive sign, their financial situation is still far from ideal.
It's expected that Hertha will have another huge deficit this season, as per all predictions.
Hertha's official announcement on April 16, 2024, stated, "The capital club is about to achieve a positive Operating Result (EBITDA) for the first time in years, thanks to the professional and financial support of 777 Partners by the end of the 2023/24 season." Herrich added, "We've made a valuable step toward our goal of cleansing our budget."
The positive Operating Result will have to be offset by interest payments and depreciation, which means Hertha will probably show a loss of around 24.9 million euros on their balance sheet.
Hertha's financial troubles have been greatly reduced from the previous year's record loss of 99.1 million euros by saving around 70 million euros.
However, it's uncertain when Hertha's balance sheet will finally show profits, considering all costs. Herrich mentioned, "The financial consolidation process will still take another 2-3 years."
Herrich also emphasized that income from television revenues and player sales would considerably drop. 777 Partners won't be making any more cash injections into Hertha's equity after their initial contribution of 75 million euros.
For Hertha to reach the much-desired goal of black figures, Herrich and the new financial head Ralf Huschen, who's joining on July 1, have only two choices: Either significantly cut costs or make a sizable profit through a promotion to the Bundesliga.
If these options fail, Hertha's financial wiggle room will keep shrinking year after year.
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Source: symclub.org
