Infrastructure project

European Championship participation also an important financial boost for ÖFB

Participation in the European Championship is also financially important for the ÖFB.

(Bild: GEPA pictures)

Participation in this summer's European Championship in Germany will have a welcome one-off financial effect for the ÖFB in the year in which it implements its major infrastructure project. The soccer association made a profit in the low seven-figure euro range from the last European Championship in 2021. The construction of the training center in Vienna-Aspern, which cost just over 70 million euros, is not dependent on this. However, the ÖFB's share of just under 24 million euros means that reserves are dwindling to a minimum.

Once the facility is completed, the not insignificant operating costs will have to be covered. "The one-off effects are important in order to keep the entire economic structure of the association in balance," explained Bernhard Neuhold, Managing Director of ÖFB-Wirtschaftsbetriebe GmbH. The manager recalled the challenging economic situation in the sports industry, high collective bargaining agreements and persistently high inflation, which is particularly reflected in the travel costs for the eleven national teams.

Profit after the coronavirus years
In 2023, the ÖFB nevertheless generated a surplus - in the high six-figure range, according to Neuhold. Prior to this, Austria's largest sports association had twice posted negative results, not least as a result of the coronavirus pandemic. Turnover amounted to around 60 million euros in the previous year. In 2024, a new record figure will be achieved thanks to the European Championship prize money - even if the Bundesliga and the nine national associations also benefit from the UEFA payments as before.

Bernhard Neuhold

(Bild: GEPA pictures)

The solidarity payments to the entire soccer structure could be adapted this time compared to 2021. "For us, it is already an argument that we are implementing our infrastructure project. That is our focus, so additional funds will help," emphasized Neuhold. The federal government and the City of Vienna are each providing 23.14 million euros in funding for the center. The ÖFB intends to cover the remainder entirely from its own funds. Only in the event of unforeseen liquidity bottlenecks is interim financing via a loan not ruled out.

The payments to total contractor Strabag run until the beginning of 2026, and the association wants to avoid high interest rates on the loan. "The fact that the ÖFB has built up considerable reserves over the last 20 years has paid off," said Neuhold. Even during the era of general director Alfred Ludwig, who was in office until 2016, the association always had the idea of building up these reserves in good economic times so that it could afford its own infrastructure at some point. "That moment has now come."

"Buffer is being lost"
According to Neuhold, this does not necessarily mean that the belt has to be tightened in other areas. "Of course, the loss of the reserve means a bit of a buffer and security for difficult times," explained the Lower Austrian. As before, all expenditure and projects will be critically scrutinized. "We want to continue to develop in all areas in the future, that is our ambition. We want to take the next steps, but it also has to be affordable."

(Bild: GEPA pictures/ Armin Rauthner)

European Championship income could help. UEFA has not changed its prize money compared to 2021 - although the stadiums will be full this time, unlike at the European Championships during the pandemic. The entry fee is 9.25 million euros, each win brings one million, each draw half a million and advancing to the round of 16 a further 1.5 million. In addition to external personnel, transportation and logistics costs and bonuses for the players, the most important cost factor is the accommodation.

Hotel as a stroke of luck
The ÖFB team will be staying at the glamorous Schlosshotel Berlin in the Grunewald district. The decision was made at short notice after the group draw with two matches in Berlin, after an individual booking outside the UEFA catalog had fallen through in advance. "In hindsight, that turned out to be a stroke of luck," said Neuhold. Last but not least, the cancellation conditions were much more favorable than at the Spa & GolfResort Weimarer Land, where the English are now staying.

There would no longer be any payment obligations in Berlin after the European Championships. "All the arrangements we had in mind in the south of Germany would also have been considerably more expensive in the end," said Neuhold. "It is therefore not only a good choice for us logistically and in terms of content, but also economically." The players are also satisfied.

Marko Arnautovic and David Alaba are on the team council.

(Bild: GEPA pictures)

Together with ÖFB President Klaus Mitterdorfer and Sports Director Peter Schöttel, Neuhold held an initial meeting with the team council - consisting of David Alaba, Marko Arnautovic, Marcel Sabitzer and Konrad Laimer - on Monday afternoon to discuss the amount of the European Championship bonuses. "It was a very good exchange," said the managing director. "Everyone involved is confident that we will find a solution based on partnership in the coming weeks."