Hamburg SV leaves German Handball Bundesliga because of Concourse and License Revocation. Legal Action expected.
HAMBURG- There is an old saying that describes the mentality of the European sports leagues: “Money makes the world go round.” If there is no money to operate a team, the team folds. Teams go up and down the elevator model, where promotion to higher tiered leagues and demotion lower tiered leagues are not only based on the performance of the players, but also the financial health of the club. If one puts the American basketball team the Philadelphia 76ers in the equation, that team would have folded by now. The fortunate part is in case of hard times like the basketball team is going through, the league steps in to take ownership, reshape the club and look for a new owner to replace the one ousted for the inability to operate the team properly, especially in financial terms.
For the German professional handball team, Hamburger SV, the management is probably wishing that the American model was in place right now. The HSV has shut down operations this evening after receiving word on Wednesday that the team has lost its license to compete in the Premere League for the rest of the season. Furthermore, they will not be allowed to apply for the first or second tiers of the Bundesliga, thus putting them in the local league. The reason behind this was a snowball effect which has been in the making for well over a year. It started with a deficit, followed by the withdrawl of the main sponsor Andreas Rudolph, who had promised to invest 2.5 million Euros ($3.3 million) into the team, according to information from German public radio station NDR. The team was unable to come up with 2 million Euros at the end of the first half of the season. As a consequence, HSV filed for bankruptcy in December due to not enough liquidity to finance the remaining games of the season and the players. The German Handball Bundesliga revoked its license on Wednesday as a consequence, and the reaction was enormous. While almost all of the players have left the team, the revocation and as a result, the decision to shut down the Premere League team today will have negative repercussions on the league, as many teams hosting HSV in the second half of the season will have to recall the tickets, resulting in massive losses. Some of the teams, including Berlin, Minden and even Flensburg are considering legal actions against the now defunct team, demanding compensation for damages.
Hamburg’s demise is not the first in German or even American sports. Its exit from the top league is the first in handball since 1990. Yet its fall from grace is the first in German sports since the soccer teams of Kickers Offenbach and Dynamo Dresden. Offenbach was delegated to the regional league from the 3rd tier of the Bundesliga after the 2013/14 season for insufficient funding to continue in the upcoming season. Yet the last fall from the top came in 1995, when the German Soccer Federation denied the request of Dynamo Dresden to play in the 1st and 2nd league, thus forcing the eastern Saxony team to play in the regional league. That team is currently in first place in the 3rd League and is knocking on the door to its return to the 2nd League for the first time since 2014. On the American front, most of the teams folding due to financial issues came in the women’s basketball league, WNBA. The last casualty was the Sacramento Monarchs in California, where despite winning the WNBA championship in 2005, the team disbanded in 2009.
However, like this team as well as the Cleveland Browns in American football (which went on hiatus from 1996-99), handball in Hamburg will eventually return to national stage. While the Premere League team, which won the Bundesliga championship in 2011 and the Champions League in 2013, is officially disbanded, despite its current 4th place finish, HSV’s junior team is making its way to the third tier in the handball food chain with its lead in the state league standings. Because the HSV sports organization will not be affected by the sudden destruction of the Premere League handball team, the junior team will have a chance to fill in the footsteps of the fallen dinosaur. If successful and if management can build a fan base and good sponsorship from companies in the free city, chances are that handball will return to national stage before 2020. It is highly unlikely that despite the potential legal actions, HSV will disappear and not return, like it happened to Saxony Leipzig in 2012. It would be too cruel to the city of nearly 2 million that has a popular Bundesliga soccer team. It will just be a few years before handball returns to national stage, and with that, a bigger fan base that will stay loyal until the very end. Just ask the fans of the Cleveland Browns, let alone the people in Sacramento, who are working to bring back the Monarchs to women’s basketball. 🙂
For more on the latest with HSV, please follow NDR whose link is here.