Interview with Dr. Achim Illner, CEO of LIBERO football finance AG (LIBERO AG), on corporate development, the challenges of the 2023 annual financial statement, and future prospects.
Question: Dr. Illner, at the end of January, you announced the 2023 annual financial statement, but it lacked the auditor's certificate. This requires an explanation. Please tell us the specific reasons.
Answer: Over the past months, the press has covered our financing deal with FC Barcelona. The auditor’s refusal to issue the certificate is related to a complex transaction, the so-called FC Barcelona/Bridgeburg transaction. This involved acquiring a 9.8% stake in Bridgeburg Invest S.L. in Barcelona. The financing of this transaction – and this is crucial – was secured by an external guarantor. However, due to the unexpected non-payment by this guarantor, delays occurred, leading to legal disputes with the involved parties. Since the transaction poses a significant uncertainty regarding LIBERO AG’s financial position, it constituted a major audit impediment for the auditors, ultimately leading to the understandable refusal of the certificate.
Question: Why did the management board decide to publish the 2023 annual financial statement despite the refusal of the certificate?
Answer: Transparency towards our investors and stakeholders is our highest priority. Our financial statement shows solid key figures, and despite the lack of certification, the numbers have been audited and deemed accurate by the auditors. The refusal of the certificate is solely due to the uncertainties surrounding this transaction and not due to doubts about the accuracy of our financial reporting. Additionally, we are preparing capital measures that are crucial for the future of LIBERO AG. Any further delay in publishing the financial statement would have created uncertainty and hindered the execution of our strategic initiatives. Therefore, we decided to publish the annual financial statement without certification – a step taken in the best interest of the company and its shareholders.
Question: What progress has been made regarding the unresolved issues in the FC Barcelona/Bridgeburg transaction?
Answer: We have already made significant progress. In August 2024, we reached an agreement covering 25 million euros of the original 40 million euro transaction. The remaining 15 million euros were expected to be settled by the end of 2024. However, the well-documented challenges at FC Barcelona, particularly regarding the registration of Spanish national player Dani Olmo, caused further delays as these issues required significant attention from FC Barcelona’s management. Nevertheless, we remain confident that we will soon reach a satisfactory solution for all parties involved.
Question: You previously mentioned the legal proceedings against the defaulting guarantor. What is the current status?
Answer: We have already initiated legal action against the guarantor to assert damage claims equivalent to our obligations towards Barcelona/Bridgeburg, plus additional compensation claims. The case is currently pending in Spain, and we expect to successfully enforce our claims. If we prevail in this case, there could be revenue potential in the lower single-digit million range for the company.
Question: A look into the future?
Answer: Gladly. With the change in our shareholder structure and the associated structural adjustments, we began repositioning LIBERO AG as a key financial partner for European football clubs in mid-2023. This is not only about expanding our service portfolio but also implementing a comprehensive strategic realignment. A key part of this new strategy is developing LIBERO Exchange, an innovative B2B financing platform for European football clubs from the first to third leagues, into which we are currently investing significant time and effort. The goal of this platform is to connect football clubs with financing partners, creating a sustainable, cost-efficient, and strategically sound solution for financing needs in professional football. The official launch is planned for the first half of 2025.
Question: What further steps does LIBERO AG plan for the coming months?
Answer: Our focus is on three key areas. Firstly, we are driving the development and implementation of LIBERO Exchange forward. Secondly, we are committed to successfully executing the planned capital measures to secure our growth sustainably. Thirdly, we are focusing on enforcing our legal claims to protect the company’s financial interests and generate potential revenues for our shareholders.
Question: What message would you like to share with investors?
Answer: LIBERO AG is currently undergoing an exciting and challenging transformation phase. We are confident that our strategic realignment will be successful in the long term. Despite short-term challenges, we are built on a solid foundation. We thank our investors for their trust and look forward to taking the next steps together, unlocking the full potential of LIBERO AG in the exciting growth market of European professional football.