It's burning brightly

Next low blow! Is Leoben out now?

The 2028 mission is a long way off for Carsten Jancker and DSV Leoben

(Bild: Urbantschitsch Mario/Mario Urbantschitsch)

The negative headlines just won't stop! DSV Leoben is on red alert just before Christmas! Because: The traditional club, which is in financial trouble, received the next piece of bad news today. Will the lights go out for good? 

The disaster began almost a year ago when serious allegations (investment fraud, money laundering, etc.) were made against DSV Leoben. Although none of this has been proven to date, the image of the traditional club has been severely tarnished.

As a result, the second division club was denied a Bundesliga license, while coach Carsten Jancker's team returned to the second division in the autumn and spent the winter as league leaders. Despite further setbacks.

Due to excessive salaries and points bonuses (what a win was worth in the previous season, the players in the Regionalliga got for a draw this season), DSV Leoben got into a threatening financial situation in September. Thomas Janeschitz, sports director and managing director of Profispielbetriebs GmbH for only a few months, had to go.

The whole DSV statement

DSV Leoben was informed today, completely unexpectedly and without any prior notice, that its main sponsor TGI AG was terminating its contract. This unexpected decision hits the club in an already difficult financial situation and forces us to examine all necessary measures to secure the future of the club. The club has been in a precarious financial situation since the start of the 2024/25 season due to numerous operational and strategic mistakes made by the management at the time. Particularly in the professional division, these wrong decisions have led to immense personnel costs and thus also to considerable ancillary costs, which have placed an additional burden on the club's financial situation. In order to prevent the situation from deteriorating further, the Executive Board reacted at an early stage and dismissed and realigned the management. This was also reported in detail to the association's members on October 11, 2024.

Nevertheless, the financial stabilization of the association remains a major challenge. Legal action has also been taken against the individuals who were responsible for the association between May and September 2024. Serious allegations are pending, including the suspicion of embezzlement of association funds. The association will exhaust all legal options to assert claims for damages and ensure full transparency towards members and partners. Another incriminating factor is that there were verbal agreements with various sponsors that were not kept. These included, for example, contributions to the salary payments of various new signings before the 2024/25 season. We suspect that the general economic situation across the country contributed to the fact that these commitments could not be implemented.

This has made the club's financial situation even more difficult and highlights the challenges currently facing the entire sports and economic sector. DSV Leoben is currently working together with the legal department, restructuring experts and auditors on a well-founded analysis of the situation. In this context, the possibility of an orderly restructuring process or, if necessary, filing for insolvency is also being examined. Like many other companies, the current overall economic situation is also hitting us hard. DSV Leoben Profispielbetriebs GmbH is particularly affected and its economic stabilization is now a top priority.

A team of economic advisors has been working on the financial recovery. In the last few weeks, confidence has therefore returned to the blast furnaces. Donawitz also submitted its application for admission to the Bundesliga on time in November. But today, Monday, the next blow: TGI AG withdrew as the main sponsor. The gold company will have to stand trial in January on charges of serious fraud.

The situation is more than serious. "DSV Leoben is currently working together with the legal department, restructuring experts and auditors on a thorough analysis of the situation. In this context, the possibility of orderly restructuring proceedings or, if necessary, filing for insolvency is also being examined. Another negative factor is that there were verbal agreements with various sponsors that were not kept. These included, for example, contributions to the salary payments of various new signings before the 2024/25 season," the club stated in a press release. The 2028 mission, i.e. promotion back to the Bundesliga, is in serious doubt.