The Bundesliga resumes on Saturday, which means Bayern Munich CEO Karl-Heinz Rummenigge is a very busy man, as is every club executive across Germany.
However, there are many issues that are left to be ironed out, specifically future dilemmas. Sports are dealing with the financial ramifications of the COVID-19 pandemic and that is apparent in soccer.
Fans will not be present at any Bundesliga match, which affects the bottom line for all teams, even Bayern – the richest club in Germany.
“The financial impact of Bayern Munich is dependent on when it is allowed to play again with spectators,” Rummenigge said on a Zoom call with various journalists on Wednesday. “We have a scenario where, maybe, spectators until the end of the year are not allowed. … That means ticketing, sponsorships, business seats and many other factors are, of course, dependent on it.
“Regarding our balance sheet and regarding our income, we have to care about it. In fact, everybody has to care about it and the bigger clubs probably have to care about it a bit more because our wage bill is probably bigger than the mid-size or smaller clubs.”
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Even with the Bundesliga season finishing before June 30, the expiration date for most player contracts in Europe, there could be a domino effect on German clubs thanks to the pandemic.
This will be especially poignant when the transfer window opens in June and July. Premier League clubs spent billions on players in the summer of 2019, while the Bundesliga racked up €742 million ($1.1 billion) in fees. Player sales are vital for many clubs, specifically in smaller leagues. This is how teams generate cash flow.
But COVID-19 has impacted the market before it’s even opened. German-based soccer database Transfermarkt reported their global player values have gone down by €9.22 billion ($14 billion).
“I’m convinced that there will be an impact in the next summer transfer window,” Rummenigge professed. “I’m listening to many colleagues in Spain, in Italy or in England. Everybody has to take care of their financial situation.
“I’m hearing that many clubs would like to give players on the market to sell and there are not so many clubs able to pay in cash or to fulfill the demand and requests of these clubs,” said Rummenigge. “I believe prices will go down and maybe salaries as well. But maybe we are then able to bring them down on a bit more stable and rational basis.”
Some teams have already started to adjust for the post-coronavirus world. Juventus, one of the top clubs in Europe, has installed a self-imposed salary cap, per Corriere di Torino (h/t The Daily Mail). The Italian giants will now offer players a maximum annual wage of €9 million ($13.7 million) in an effort to control their finances. Cristiano Ronaldo is Juve’s top earner at €31 million ($43.7 million).
Rummenigge believes this could become the new normal in Europe, where teams mimic their North American counterparts.
“I believe the U.S. sports are better organized because they have this salary-cap system … Which is completely different than European soccer. But in this case, in the past couple of weeks, it was very heavily discussed in all European countries, if maybe the U.S. sports can be a good example of avoiding financial crises in the future.”
Bayern players have no concerns about restart
Following Danny Rose’s outrage over the Premier League’s plan to resume the season, it was revealed by the BBC that several players told the Professional Footballers’ Association they have “real concerns” about returning.
That’s not been the case at Bayern Munich. Rummenigge said no players were worried or critical about restarting football and are ready to be back on the pitch.
Because Bayern has an office in Shanghai, the club experienced the early impact of COVID-19 in China and was able to prepare for the pandemic on the sporting side of the team. Players were given training regimens to complete at home before group training resumed in April.
“Our coach and our manager and all of his staff prepared [sessions] in advance at home for the players,” Rummenigge revealed. “We had training sessions, we called it ‘cyber training,’ daily with specialists via the internet.
“This week, after the decision made by the politicians, it is allowed to have normal training sessions. I believe that was very important for the coaches to prepare the team for next week.”
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No update on Champions League resuming
Despite Lyon president Jean-Michel Aulas all but confirming a date for the club’s second leg of its round-of-16 clash against Juventus in the Champions League, UEFA’s priority is to ensure domestic leagues can finish.
“UEFA has decided that the national leagues have to finish [before the Champions League returns],” Rummenigge said. “England, Spain, Italy and Germany have to finish their seasons and then we have the problem of the French teams, Paris Saint-Germain and Lyon, which has to play the second leg against Juventus because their season in France has finished by the decision of the politicians.”
Bayern Munich themselves have to finish their round-of-16 matchup against Chelsea. Bayern won 3-0 in the first leg at Stamford Bridge on Feb. 25 and has a strong chance of reaching the quarterfinals.
The other unfinished round-of-16 ties are Barcelona and Napoli along with Manchester City and Real Madrid.
German officials hoping to finish German Cup
The Bundesliga isn’t Bayern Munich’s only competition that needs to be completed. The Bavarians are also in the semifinals of the German Cup and are scheduled to face Eintracht Frankfurt in Munich.
Rummenigge says that there is a plan to complete the tournament, but it’s all dependent on the politicians’ approval.
“The information we just have now on the table is the following: On the 9th and 10th of June, we’d like to play the semifinals [of the German Cup] and on the 4th of July, we would like to play the final but this is really under the permission still of the German politicians. It is not fixed.”
Alphonso Davies ‘deserved’ new contract
There’s no doubting Alphonso Davies’ meteoric rise this season with Bayern Munich. The 19-year-old became a permanent starter for the team in November and has not relinquished his place in the side.
His performances in Germany and in the Champions League led to Davies signing a new contract with Bayern, which Rummenigge says was “deserved” based on all of the Canadian’s characteristics.
Davies is under contract with Bayern until 2025.
