The historic third-division club TSV 1860 Munich is in a precarious position regarding its license for the upcoming season after investor Hasan Ismaik reportedly revoked a loan on short notice.
According to initial reports, the club, nicknamed «The Lions,» must demonstrate liquidity of €2.7 million to the German Football Association (DFB) by June 3rd. Failure to do so could result in the traditional club being relegated to the Regionalliga.
The financial deficit, partly attributed to increased squad expenses, was reportedly known as of May 2025. Investor Hasan Ismaik had previously supported and approved the situation. In February, Ismaik’s representative in Munich allegedly informed the club that the deficit would be covered by a new loan, a common practice for the Munich Lions.
However, it is now reported that the Jordanian investor abruptly canceled the loan on May 21st. The stated reason from Ismaik’s company was alleged breaches of reporting obligations by the club’s management. A letter reportedly states, «Unfortunately, due to ongoing violations… we were forced to take this step.»
Ismaik’s company is reportedly seeking alternative financing and is willing to pledge parts of its shares as collateral. The Lions’ management, however, has not accepted the loan cancellation, deeming it legally invalid. Legal proceedings have reportedly been initiated. As a precautionary measure, the club has entered a state of emergency management, and ongoing payments, including salaries, can no longer be made, according to the club’s management to the majority shareholder.
The current conflict with Ismaik is likely linked to his apparent waning interest in the club since the failed sale process about a year ago. He is reportedly seeking to divest his shares, but all discussions have stalled due to unsatisfactory offers. A potential deal fell through again approximately two weeks ago, with a valuation of around €20 million for his stake being mentioned.
1860 Munich’s License Critically Endangered
Ismaik’s own financial situation does not appear to be a factor; the Abu Dhabi-based businessman recently donated approximately €25 million to the ‘Mother of the Nation Endowment for Orphans’ initiative.
The club now faces the challenge of either hoping Ismaik releases the funds through some means or securing the necessary capital independently. The only viable collateral would be further company shares. Currently, the club holds 40% ownership, while Ismaik possesses 60%. However, selling shares requires the approval of the 27,254 members.
Another option is to secure a loan from an external lender, with repayment due within a specified period.
However, this path also presents obstacles. Firstly, Ismaik’s consent would be necessary according to the cooperation agreement. Secondly, a loan would only postpone the problem, as the club would need to present a positive continuation forecast again by autumn. This is where the next difficulty arises: according to DFB regulations, equity must not deteriorate further, which would happen with additional debt.
Lions Finished Eighth in the Third Division
Historically, Ismaik has consistently covered deficits. A significant exception occurred in 2017 when, after relegation from the 2. Bundesliga, the club was forced to drop down to the Regionalliga. It remains questionable whether Ismaik will step in again after the failed sale of his shares last summer.
Rumors suggest an investor group, including former national player Thomas Hitzlsperger, is interested in acquiring a stake.
On the sporting front, the Lions’ long-awaited promotion failed for the eighth time. While the team, managed by Markus Kauczinski, was not involved in a relegation battle, they finished the season in eighth place. Despite spectacular transfers of Kevin Volland and Florian Niederlechner, the team had entered the season as promotion favorites.