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Financial survival of professional clubs: “Everything that is not football has a hard time”

by Luis Mendoza - Sport Editor

Potsdam Sports Clubs on the Brink: A Financial Crisis Echoing Across German Professional Sports

Potsdam, Germany – A wave of financial instability is threatening the future of professional sports in Potsdam, with the recent denial of a Bundesliga license to the SC Potsdam volleyball team serving as a stark warning. This isn’t an isolated incident; football club Turbine Potsdam has long battled financial woes, and other local clubs are sounding the alarm. The situation underscores a deeper, systemic challenge facing professional sports organizations throughout Germany, a challenge that demands immediate attention and innovative solutions. This is breaking news with significant implications for the future of German athletics, and we’re bringing you the latest insights.

The Root of the Problem: Lack of Professionalization & Funding Gaps

According to Jakob Kunert, a research assistant in sports management at the University of Applied Sciences for Sports and Management Potsdam, the core issue isn’t unique to Potsdam. “This is not a Potsdam-specific problem, but a general challenge in German professional sports,” Kunert explains. “Professional structures are often missing. There is a lot of responsibility spread over a few shoulders.” Many clubs operate with limited resources, hindering their ability to secure funding and navigate complex licensing requirements. It’s a classic catch-22: needing money to attract money, and lacking the personnel to effectively pursue it.

This lack of professionalization extends to accessing available funding. Kunert points to “bureaucratic hurdles and a lot of effort” required to claim state and federal funds. Clubs often struggle to justify the cost of hiring dedicated staff to manage these processes, creating a vicious cycle of underfunding and limited growth. It’s a problem that impacts not just team performance, but the very sustainability of these organizations.

The Shadow of Berlin: Sponsorship & Spectator Challenges

Potsdam’s proximity to Berlin presents another significant hurdle. The capital city’s dominant football clubs, Hertha and Union Berlin, attract the lion’s share of sponsorship interest due to their larger reach. “Berlin as a big neighbor can also be a factor,” Kunert notes. “Everything that is not football and, moreover, women’s sports are difficult – even if that slowly changes slowly with the latter.” This creates an uneven playing field, making it harder for clubs in smaller cities to compete for vital financial support.

Attracting spectators is also a constant battle. Potsdam, a vibrant cultural hub, offers numerous entertainment options, competing directly with local sports teams for audience attention. The lack of major sporting events in the city further contributes to this challenge, hindering the development of a strong sports-focused identity. This is a long-term issue that requires a concerted effort to promote local athletics and build a dedicated fan base.

Beyond Traditional Sponsorship: A New Approach

Kunert emphasizes that clubs must evolve their sponsorship strategies. Simply offering jersey advertising is no longer sufficient. Successful partnerships now require offering tangible benefits to companies, such as employee recruitment opportunities, workforce perks, or networking events within the sports environment. This shift demands a more proactive and creative approach to building relationships with potential sponsors, focusing on mutual value rather than simply visibility.

The Bigger Picture: A System in Need of Reform

While local and state politics acknowledge the value of Potsdam’s professional sports landscape – evidenced by successful Olympic programs and support from public companies like EWP – a fundamental restructuring is needed to ensure long-term viability. The current model, reliant on a patchwork of funding sources and often lacking professional management, is unsustainable. This isn’t just about saving individual clubs; it’s about preserving the future of German professional sports as a whole.

The situation in Potsdam serves as a critical case study, highlighting the urgent need for increased investment in sports management infrastructure, streamlined access to funding, and innovative sponsorship strategies. Without these changes, more clubs will face the same fate as SC Potsdam, jeopardizing the success and accessibility of sports for athletes and fans alike. Stay tuned to archyde.com for continuing coverage of this developing story and in-depth analysis of the challenges facing German professional sports.

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