BMW deal with FC Bayern cancelled
Author: Marcus Schilling
Another group in the race
BMW wanted to become FC Bayern Munich’s new strategic partner no later than 2025. An investment of around 800 million euros was planned. However, this plan now fails because another group wants to pay even more money.
“The negotiations are over and we’re not going to sponsor FC Bayern Munich,” said a BMW spokesman. The estimated 800 million euros should be distributed over a period of ten years. In addition to the magazine Der Spiegel, the newspaper Frankfurter Allgemeine Zeitung also reported on the failed deal. The BMW spokesman did not want to comment on further details.
Both sides confirmed their plans for a strategic partnership in March. Audi is currently the strategic partner of FC Bayern and holds a stake of around 8.33 percent in FC Bayern Munich AG. According to FAZ, this partnership will continue. Audi allegedly has made significant financial progress once again.
According to this, BMW was promised by FC Bayern that it would be able to terminate the existing contract prematurely by 2025. In the negotiations BMW urged to enter into the partnership earlier. However, Audi boss Bram Schot insisted on a term until 2025 and had submitted an improved offer.
Audi is now offering FC Bayern 60 million euros a year to extend the contract by twelve years. According to the FAZ, this will result in a financial commitment of around one billion euros, including fringe benefits. From BMW’s point of view, this sum is “not economically justifiable” for the group.
Recently, a loss was reported in BMW’s core business: A provision of billions had to be recorded for a threatened EU antitrust fine. The difficult environment in the automotive industry and higher R&D spending are also burdening the Group.