Dynamo Dresden faces budget cuts – financial challenges are alarming!

Dynamo Dresden faces budget cuts – financial challenges are alarming!

SG Dynamo Dresden is a topic of conversation in the region! Last weekend, the supervisory board held an all-day closed meeting, with three managing directors – David Fischer, Stephan Zimmermann and Thomas Brendel – taking part in intensive discussions. A central topic was the future of the professional budget, as considerations were given to subsequent cuts. It was also emphasized that, despite economic challenges, an attractive budget should be made available for the sports sector in order to ensure relegation in the 2nd Bundesliga. The economic plan for the 2025/2026 season should be finalized by the end of June, as [Bild] reports.

But what does that mean for the club's financial situation? Dynamo Dresden published the annual report for the 2023/2024 season in October 2024 and reported a profit of 1.6 million euros; overall, the club finished with a plus of 2.6 million euros. However, this was heavily influenced by 4.9 million euros in Corona aid. Without this help there would have been a loss of 2.3 million euros. In addition, 980,000 euros in taxes went to the city of Dresden. Even if promotion to the 2nd Bundesliga is necessary to avoid financial risks, there are many challenges ahead as the club's operational area is once again in deficit, as [Tag24] reports.

Economic influence of the association

In addition, a study shows that SG Dynamo Dresden is a real economic factor in the region. With 86 million euros flowing into the local economy every year, promotion to the 2nd Bundesliga could increase this total to over 120 million euros. The extensive survey, carried out by SLC Management GmbH, also documents that around 1,250 jobs are created directly and indirectly by the association. Gastronomy and the hotel industry benefit significantly, with around 13 million euros being generated through consumption by home and away fans. The club's well-known image and popularity also have a high media reach, the effect of which is estimated to be comparable to 35 million euros in marketing costs, as [Stadionwelt] reports.

A look at the attendance figures shows that Dynamo had the highest average attendance in the 3rd league last season with 28,798 fans. This support and the financial added value are of crucial importance for the city and region, as David Fischer, Managing Director of Communications at the SGD, and Prof. Dr. Alfons Madeja from SLC Management emphasize.

In view of the internal disagreements and the atmospheric disturbances within the club, it should be noted that the path to the 2nd Bundesliga is not only a sporting goal, but also an economic necessity. The supervisory board and the managing directors are therefore faced with the task of demonstrating good skills in finding the right direction and securing long-term financial stability.