Porsche to Take Control of VfB Stuttgart? What This Means for the Club and the Bundesliga

Are you aware of the VFB Stuttgart Porsche deal? If not then do not worry because we are going to explain everything about the VFB Stuttgart Porsche deal in this article.

The recent announcement of the “Wuerttemberg World Brands Alliance” has sparked intrigue and speculation around the financial implications for VfB Stuttgart. The VFB Stuttgart Porsche deal, presented by VfB CEO Alexander Wehrle and Claus Vogt, the chairman of the supervisory board, has been hailed as a historic partnership. 

Porsche, in addition to anchor investor Mercedes-Benz, is joining forces with the Bundesliga club, along with Ludwigsburg consulting company MHP, a Porsche subsidiary. MHP has secured the naming rights to the stadium for the next decade, as Mercedes-Benz “gives them back” to VfB. This collaboration introduces exciting opportunities for VfB and raises several questions.

Which Sponsorship Services are Involved in the VFB Stuttgart Porsche deal?

One of the most notable changes resulting from this partnership is the relocation of VfB’s home games from the Mercedes-Benz Arena to the MHP Arena. While the financial details of Ludwigsburg’s annual payment to VfB are yet to be disclosed, it is important to highlight that Mercedes-Benz has returned the rights it held for 30 years, which were initially secured for 20 million euros. 

Although the sum of 0.7 million euros per season may seem relatively low, it was a crucial agreement made during a financially challenging period for VfB. Mercedes-Benz will continue its exclusive partnership as the mobility partner and anchor investor. Porsche AG is set to become another significant shareholder, and negotiations for the contract package are expected to conclude by the end of July. Furthermore, Porsche will sponsor VfB’s youth academy, bolstering the club’s investment in nurturing young talent.

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Can the VFB Stuttgart Porsche Deal Still Fail?

While the press release regarding Porsche AG’s potential stake in VfB Stuttgart AG uses the subjunctive. This indicates the possibility of the VFB Stuttgart Porsche deal falling through, it is unlikely given Mercedes-Benz’s apparent support. In the past, tensions between Porsche and Mercedes-Benz AG have hindered potential collaborations. However, these concerns are unlikely to arise again, as Mercedes-Benz has evidently approved of this alliance. Moreover, the Volkswagen subsidiary’s entry is highly anticipated, and failure seems virtually impossible, especially considering that Porsche is currently preparing for its annual general meeting.

How Much Money Will VfB Receive?

To assess the financial impact of this collaboration, it is necessary to analyze the various aspects separately. Wehrle mentioned a package worth “more than 100 million euros.” The revenue from the stadium’s naming rights is expected to increase significantly, providing VfB with approximately 3.5 to 4.5 million euros per season. Porsche’s investment in an 11.75 percent stake in VfB AG, equivalent to the amount previously paid by Mercedes-Benz, is estimated at around 40 million euros. 

Additionally, Jako holds a 1.16 percent stake in VfB. When combined with other sponsorship packages, such as the NLZ sponsorship by Porsche, the total investment aligns with Wehrle’s outlined amount. As there was no involvement from marketer Sportfive, no commission needs to be deducted from the funds.

How Will the Money Be Allocated?

Initially, none of the funds will be directed toward the squad. Wehrle clarified that VfB must focus on consolidating and strengthening its equity. As of December 31, 2022, VfB’s equity stood at 11.2 million euros, a significant decline from the 46.1 million euros reported three years earlier. Wehrle intends to invest in areas of growth such as digitization, internationalization, and infrastructure improvement. 

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However, following a substantial loss of over 90 million euros due to the COVID-19 pandemic and expensive stadium renovations, VfB’s financial resources are limited. The Porsche millions, received in two tranches, will contribute to increasing equity and offsetting previous losses. These funds will provide flexibility for potential contract offers to VfB’s talented professionals who may seek new opportunities, such as Konstantinos Mavropanos or Borna Sosa. However, it is important to note that VfB’s primary objective is not a direct assault on the European stage but rather maintaining stability and financial security.

New Sponsorships and the Future of Jersey

As the agreements with Mercedes-Benz subsidiaries Mercedes-Benz-Bank (jersey) and Mercedes EQ (sleeves) approach expiration, VfB is currently engaged in discussions to secure new partnerships that align with the club’s strategy and values. The negotiations are ongoing, and VfB aims to find partners who can contribute to their continued success. In the past, these sponsorship agreements generated approximately eleven million euros in revenue for the club.

The VFB Stuttgart Porsche deal could bring a big change and whether it is good for Bundesliga or not, time will tell.

There is more different information on Germany betting exchange.

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