Budget cuts: potential saving of 10 million euro
Board members, playing staff and coaches to voluntarily reduce their wages.
Austerity measures on the basis of solidarity: 1. FSV Mainz 05 has completely reworked its economic plan in order to withstand the uncertainty of this season and avoid great losses of liquidity, and has identified a potential saving of €10 million. In order to achieve this, the club has stopped all unnecessary engagements and found room in a still-open budget. Players, coaches and board members have agreed to waive a portion of their salaries from April until June. Around three quarters of all full-time staff at the club have reduced their hours.
This is a great show of solidarity and closeness for the club. “Coronavirus has posed us as people and as a society a great challenge, one which is largely unknown for us. The same goes for Mainz 05. In order to withstand potential losses of revenue, we must ready the club,” said Mainz club chairman and chairman of the board Stefan Hofmann.
“The deciding message is this; we can overcome this current crisis together. Cuts are painful and a real stress test for us, but these measures help the club a great deal. They are a result of great solidarity within the club, from the pros to the permanent staff. Everyone we have approached supports our measures without exception and on a voluntary basis. It’s incredible, and makes me proud to be chairman of this club. Prosperity for those who can rely on the support of their employees.”
In order to identify and classify potential savings, the club has looked at various different scenarios pertaining to how the Bundesliga and Mainz 05 can develop further. “In all of these scenarios, we have identified areas for saving in all departments for the current season. These may amount to €10 million,” said Dr Jan Lehman, club CFO.
Short working hours new ground
In regards to reduction of working hours, Mainz 05 is walking on new ground. In recent days, individual meetings with employees have been held. The club is also cushioning cuts of working hours by increasing the pay received for shorter hours.
“We have found that the sense of shorter work applies to the administration as well. The suspension of all matches can compensate for the temporary loss of workload for our employees,” said Lehmann. “The important thing is that we remain within reach of our fans through club channels. We have, however, drawn up a plan as to how we can maintain operations in this difficult period without the usual demands on the club and without match operations, even with significantly reduced staff.”
Reduced hours will remain for the time being, but can be amended or even lifted should the conditions change or all clubs agree to return to playing football.
“Our responsibility is that we now prepare for significant loss of revenue and look beyond the summer. Because this current crisis also dictates planning for next season, even if we can’t accurately predict how things will look,” Stefan Hofmann said. “But our hope is to play the remainder of the season, and, in time, get back to normality. I’m convinced that this great togetherness, a common spirit, that we’re showing at the moment within the club will strengthen us for future challenges.”