Finance Uncategorized

Bayern Munich pays off stadium debt 16 years ahead of schedule, making room for transfers

Bayern Munich now owns its stadium, and has opened up money to spend on the team.

(AP Photo/Gero Breloer)
(AP Photo/Gero Breloer)

Once again Bayern Munich proves why it’s one of the most financially sound teams in soccer. The club’s chairman, Karl Heinz Rummenigge, made an announcement last week stating that the Champions League champs have completely paid off their stadium debts 16 years ahead of schedule. In 2005, the team borrowed $364 million to renovate their stadium, Allianz Arena, in a 25-year plan. Now with only 9.5 years passed, they are debt free and proving once again that they are not only a powerhouse on the field, but off the field as well.

This is great news for the Bayern Munich coach, Pep Guardiola. Rummenigge mentioned that revenues from the Allianz Arena would be invested in player transfers and that has sparked several transfer rumors, including Marco Reus and Sam Khedira in the media.

(Jamie Valdez - USA TODAY Sports)
(Jamie Valdez – USA TODAY Sports)

What is astonishing is that not only did Bayern pay off its stadium debt, but also managed to fully buy out the stadium during this period. In 2005, Bayern Munich owned half of Allianz Arena, while the other half was owned by the second-division team 1860 Munich. In 2006, Munich sold its 50 percent stake to Bayern Munich while maintaining the right to play games at Allianz.

Just how Bayern Munich achieved this we don’t know. What we do know is that in February, German insurer Allianz took an 8.33 percent stake in Bayern Munich for $150.44 million and became the third strategic partner of the team alongside Adidas and Audi. This partnership most likely helped the team pay its stadium debts.

London’s Arsenal should take notes on Bayern Munich’s financials since Arsenal borrowed a similar amount of money in 2006, and are nowhere near paying off their stadium debt.

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