Third-tier club TSV 1860 Munich is in jeopardy of losing its license for the upcoming season. The club has now responded to a recent media report concerning this critical situation.
In the midst of this challenging predicament, the TSV’s executive board attempted to de-escalate the tension with an official statement on Tuesday evening. The club’s leadership adopted a measured tone, striving to project optimism.
«The submission of proof of liquidity to the DFB as part of the licensing procedure for the 3. Liga is a regularly recurring process for TSV München von 1860 GmbH & Co. KGaA at the beginning of a new season,» the Lions stated. «We currently expect the proof of liquidity to be provided to the DFB in a timely manner. Discussions on this matter are ongoing.»
However, the club’s top management remains tight-lipped regarding specific details: «We ask for your understanding that we cannot comment publicly on individual aspects of the reporting at this time. However, the Executive Board of TSV München von 1860 e. V. is taking all necessary and appropriate measures to protect the legal position of the parent club and its members, and to secure the operational activities of TSV München von 1860 GmbH & Co. KGaA.»
Existential Threat Looms for 1860 Munich
According to a report by Bild, there is palpable existential fear at Grünwalder Straße: The «Lions» must close a massive financing gap of 2.7 million Euros by next Wednesday, June 3rd, and provide the corresponding proof of liquidity to the DFB. Failure to do so within the remaining week would result in the traditional club being denied a license for the upcoming third-division season. This would mark the second sport-political forced relegation in the club’s history, following the disastrous year of 2017.
Behind the scenes, the situation is dire. As revealed by Süddeutsche Zeitung, the reason for the financial predicament is as follows: Majority shareholder Hasan Ismaik reportedly terminated existing loan agreements with the Lions on May 21st on extremely short notice. The 2.7 million Euros now demanded was actually secured through these very agreements.
‘Seven Very Relevant Conditions’ for the KGaA
As a pretext for withdrawing this lifeline, Ismaik’s side cites alleged misconduct by the Munich club. The termination letter, which SZ has seen, coldly states: «Unfortunately, due to the ongoing violations… we were forced to take this step.» Specifically, the investor side accuses the management of alleged breaches of existing reporting obligations.
Particularly explosive is that Ismaik’s company, HAM, is now reportedly desperately trying to secure alternative financing. According to the letter, they have «made considerable efforts to find a new investor willing to finance HAM so that it can continue to support the KGaA.»
However, this safety net comes with conditions. It is understood that there are «seven very relevant conditions» for the KGaA to even receive the desperately needed funds. The exact nature of these conditions remains unclear. According to HAM, as collateral for the new financier, «9% of the shares in the KGaA, 30% of the shares in TSV 1860 Merchandising GmbH,» and «the profit claims from TSV 1860 Merchandising GmbH» are to be pledged.
1860 Transitions to Emergency Management
The reaction from the KGaA management was swift. Managing Director Manfred Paula is already taking legal action against the loan termination. Nevertheless, the escalation has immediate consequences for the sporting side.
Paula informed the investor side that due to the vanished millions, they are «proactively switching to emergency management.» The message to employees: «This means that we cannot make any payments until further notice, including salary payments.»
This paralyzes the already fragile squad building for the new season. New signings are, under these circumstances, currently out of the question.