Hertha BSC in the Hot Seat: Up for Auction! 📢 🛠️
Shares of Hertha Being Aggressively Sold
Get ready for some football drama, as Hertha BSC's shares held by 777 Partners have hit the auction block! According to reports from ARD-Sportschau and investigative portal "Josimar", it's happening right this moment in New York—no joke! But wait, let's dish all the deets. 🤫 🤝
It seems US investment firm 777 Partners is selling their stake in Hertha BSC GmbH & Co. KGaA, along with shares of other clubs like Genoa CFC, Sevilla, Standard de Liège, Red Star, and Vasco da Gama. The sale goes down at 10 am local time (4 pm German time) at the offices of Cadwalader, Wickersham & Taft LLP. Interested bidders can register via email and participate through video.
But here's where it gets juicy: US insurance company A-CAP could throw a wrench in the works. They might make a "credit bid," which would wipe out 777 Partners' debt to A-CAP, giving control of the clubs to A-CAP. 😱 😳
Now, there are some potential roadblocks. The articles of association for Hertha BSC GmbH & Co. KGaA state the transfer of shares requires the prior written consent of the personally liable partner, and it's unclear whether this veto right applies to the auction. But this is the wild world of football club ownership, baby, so buckle up! 🎢 💨
So, how did we get here? Flashback to March 2023: 777 Partners snapped up 78.8% of Hertha's shares, hoping to bring their football business expertise to Berlin. They had a portfolio that included the likes of FC Sevilla, Standard Liège, CFC Genoa, Red Star Paris, and Vasco da Gama from Brazil.
But after the failed attempt to acquire Everton, the money pit run dry for 777 Partners. They had to take out a loan of $23 million from A-CAP, which later morphed into a credit that swelled to an open balance of $350 million. And since they couldn't pay, their assets are now on the auction block. 💸 📦
The Berliners had hoped to buy back the shares, but the sudden auction date may pose a problem—the president said back at the end of May that there were "no signals that a short-term sale of the shares is imminent." So, the financially struggling second division club is scrambling to come up with its own financing to compete in the auction.
- The employment policy of 777 Partners may be impacted, as they are selling their stakes in various football clubs, including Hertha BSC, Genoa CFC, Sevilla, Standard de Liège, Red Star, and Vasco da Gama.
- The community policy of Hertha BSC and the other clubs involved in this sale might be affected, as a new owner could bring different management practices and decisions that might impact the local community.
- The industry of European football leagues could potentially see changes, as the sale of 777 Partners' shares in multiple clubs could lead to new ownership structures and strategic decisions, influencing the landscape of these leagues.
