According to a report from Az, German powerhouse Bayern Munich has dodged a massive financial bullet after the club was trying to thrash out a partnership/sponsorship deal with German financial services company Wirecard in the summer.
— Marshall Auerback (@Mauerback) February 2, 2021
Accord to the report, Wirecard was willing to pay Bayern Munich seven million euros as part of a three-year-deal. Included in the deal was going to be €1.5 million that would go towards Bayerns’ basketball department as the club wanted to put more effort into building new business areas and the basketball area was the main focus.
Luckily no deal was agreed
As it turns out Bayern can count themselves lucky that they did not push through and get the deal done. Wirecard suffered a huge financial loss over the summer and somehow the company had over €2 billion in missing money, and they had to file for bankruptcy.
A report from The Wall Street Journal stated that it found out that Wirecard had been using fabricated revenue to inflate the company’s value and in turn make them look like a really attractive proposition to invest in.
Wirecard CEO Markus Braun was eventually arrested by police for the revenue inflation and had a €5 million bail to which was paid but Braun must check in with German authorities every week. Somehow the missing €2 billion still has not been found and this is despite claims from the company that the money was held in the Philippines in trust accounts.
Wow… #wirecard will help FC Bayern Munich Basketball team to win
Is Marsalek and Braun playing themselves or are they just manipulating the numbers in the back ground, as due to #corona there are no people allowed at the games😉https://t.co/K2EXYlx0cd pic.twitter.com/qoswfC4TUq
— Dr. Fred… no MD/PD/XYZ-D (@Steinfireflint) June 5, 2020
When Bayern Munich was first discussing a potential deal, Wirecard was worth around €24 billion, which made them look like a great company to get involved with, on paper anyway.
Wirecard was suppoed to help with digital payments for the club
When looking at it from the club’s angle, the thought of making a deal with Wirecard who would offer their expertise to make digital and mobile payments from the club’s fans as because of the pandemic, online payments sky-rocketed.
Paying by various digital platforms has become extremely popular because with Covid fears, no touching ever occurs so everyone remains safe at the ground when fans were allowed in.
Looking at the entire situation now, it appears that Bayern has dodged a huge bullet here and while on paper, the partnership seemed very profitable for both parties, perhaps a little more digging into the background of the company should have taken place.
Either way, Bayern and Jorg Wacker can consider themselves very lucky to have not got into a partnership with Wirecard.