Hertha, a storied club with a passionate fan base, find themselves at a crucial crossroads. Now that its US investor, 777 Partners, has gone bankrupt, the club and its fans have a chance to take control of the team’s destiny again.
As the financial turmoil of 777 Partners intensifies, the question arises: can Hertha break free from decades of financial dependency and take ownership of its destiny?
The answer may lie in a combination of fan-driven initiatives and local investor alliances, drawing on lessons from other clubs that have faced similar challenges.
The financial crisis engulfing 777 Partners, a US-based investment firm, has put Hertha BSC’s future in limbo. The company, burdened with debt reportedly as high as $5bn, is under pressure from creditors to liquidate assets, including its majority stake in Hertha. This situation presents both a challenge and an opportunity for the club.
Hertha currently hold a pre-emption right, meaning they can potentially buy back the shares if 777 Partners decides to sell.
However, the club is in a precarious financial situation, struggling with a $44 million debt due in November 2025, and lacks the liquidity to purchase the shares outright.
Despite this, the club’s interim president, Fabian Drescher, has made it clear that reclaiming ownership is a priority. He told rbb24, “If it comes to the point where there are opportunities to get shares again, then it is our job to check internally how Hertha can regain majority ownership or, ideally, 100 percent ownership of the shares.”
Cooperative model for ownership
Amidst the uncertainty, Hertha’s fans are increasingly vocal about their desire to help the club regain their independence.
Discussions on social media and fan surveys indicate a growing willingness among supporters to contribute financially. This grassroots movement suggests a potential shift towards a cooperative model, where fans collectively buy shares in the club.
A cooperative model in soccer is a novel concept, especially in the commercially driven environment of professional sports.
777 Partners have been universally unpopular at every club they hold shares in
However, it offers a democratic and sustainable approach to club ownership. In a cooperative, regardless of the amount of money invested, each member has one vote, ensuring that decisions are made equitably. This model also provides financial stability, as cooperatives typically have a low insolvency rate of just 0.1 percent.
St. Pauli, a club known for their progressive approach, have been exploring a similar model. In 2018, they announced plans to establish a cooperative to finance the club independently. The aim was to secure funding for infrastructure projects and close financial gaps without relying on external investors. The idea resonated with fans, many of whom were willing to contribute between a few hundred to several thousand dollars.
Lessons for Hertha
While the cooperative model holds promise, it may be complex to implement due to the bureaucratic challenges of creating new statutes and organizational structures. An alternative, perhaps more straightforward, solution could be the formation of a local investor alliance, the report adds. Other German clubs have successfully implemented this approach in times of financial distress.
For instance, Arminia Bielefeld was saved from financial collapse in 2017 through a coalition of local businesses. Companies like Dr. August Oetker and Melitta invested in the club, providing fresh equity and negotiating debt reductions. This approach not only stabilized the club but also strengthened its ties to the local community.
Similarly, Werder Bremen recently formed the “Bremen Alliance,” where local entrepreneurs purchased a significant share of the club. This deal included strict conditions to ensure long-term stability, such as limiting the resale of shares to external parties.
The experiences of these clubs offer valuable lessons for the 2. Bundesliga side. A local investor alliance, coupled with fan participation, could provide the financial support needed to buy back shares from 777 Partners. This strategy would reduce dependence on a single investor, thereby minimizing the risks of future power struggles or financial instability.
Photo credits: IMAGO / Oliver Ruhnke : IMAGO / Belga.
