Auction Scheduled: Hertha BSC Shares Up for Grabs
Stock Shares of Hertha Under Pressure
Kick it to the Curb: Hertha BSC's Shares Owned by 777 Partners Could be Sold 🤝💰
Slam dunk time for football enthusiasts as they gear up for the auction of Hertha BSC's shares, with the US investment firm 777 Partners reportedly putting their stake up for grabs. 🔥 According to reports by ARD-Sportschau and investigative portal "Josimar", this auction could take place as early as this afternoon! 🕒
Hertha BSC, still tight-lipped, hasn't commented on the rumors yet. The auction is open to the public, set to take place at 10 am local time (4 pm German time) in New York. 🗽 Interested bidders can register via email and participate through video calls, although it remains uncertain where the Hertha shares will end up. US insurance company A-CAP is rumored to make a "credit bid," which would wipe out 777 Partners' debt to A-CAP, leaving the clubs under A-CAP's management and ownership.
Buyout Buzz: Uncertainties Before the Knife Falls 🔪🙅
The auction isn't without its uncertainties, as Sportschau reports. The biggest question mark is the articles of association of Hertha BSC GmbH & Co. KGaA, stating that "the transfer of shares in the company requires the prior written consent of the personally liable partner." The question remains whether this consent is necessary for the auction as well.
Climb the Ladder: The Rise and Fall of 777 Partners 🏃♂️📉
Since March 2023, 777 Partners has held a 78.8% stake in Hertha's shares. The US company had previously acquired these from investor Lars Windhorst. The arrival of 777 was welcomed in Berlin as the new investor brought expertise in the football business. The portfolio of 777 includes clubs such as FC Sevilla, Standard Liège, CFC Genoa, Red Star Paris, and Vasco da Gama from Brazil.
Debt Spiral: $350 Million and Where It Landed 💰🔄
After an unsuccessful attempt to take over English Premier League club Everton, 777 Partners ran out of dollars, according to Sportschau. The company then took out a loan of $23 million from A-CAP, which was later adjusted twelve times and ballooned into a loan worth $350 million. Unable to repay, the shares in Hertha BSC and other clubs are now up for auction.
New Lease of Life for Hertha BSC? 🔄💼
Hertha BSC had previously explored the option of buying back the shares. Club president Fabian Drescher stated at the latest general meeting that this was being considered. However, the sudden announcement of the auction could pose a problem for the Berliners, as Drescher had stated at the end of May that there were "no signs that a short-term sale of the shares is imminent." With the auction reportedly announced on May 29, the financially struggling second division club would need to arrange financing quickly.
Sources: ntv.de [1], ses
[1] Auction for 777 Partners' Shares: Officially Scheduled on June 6, 2025 - Details of the Winning Bidder or Current Status are Not Available. Retrieved June 6, 2025, from ntv.de.
[2] Hertha BSC Shares Auction: 777 Partners' Financial Pressure Forces Sale, Secured Party Determines Outcome - A-CAP Could Cancel or Adjourn Sale. Retrieved June 6, 2025, from ses.me.
📝 Additional Notes and Insights:
- The auction for the shares in various football clubs, including Hertha BSC, was scheduled to take place on June 6, 2025, at the offices of Cadwalader, Wickersham & Taft LLP in New York. The auction included shares in Genoa CFC, Sevilla, Standard de Liège, Red Star, Vasco da Gama, and Hertha Berlin.
- The auction was part of a broader process where 777 Partners was being forced to sell these shares due to financial pressures, including a loan foreclosure by A-CAP, an insurance firm that had been secretly funding 777 Partners' investments.
- The auction was open to "qualified bidders," who could submit offers in person or via Zoom if they couldn't attend in person. The identities of potential bidders were not disclosed in the available search results.
- The sale's outcome would be determined at the discretion of the secured party, which is an affiliate of A-CAP, and A-CAP also reserved the right to cancel the sale without notice or to adjourn it to a future date.
- The upcoming auction of Hertha BSC's shares could potentially affect the community policy and employment policy of the football club, as the outcome of the auction may lead to changes in club management and ownership.
- Interested investors, including those with a focus on business ventures and sports, should keep an eye on the finance implications of the auction, as the sale could provide them with an opportunity for investing in a renowned football club like Hertha BSC.
- Given the financial pressures faced by 777 Partners, the auction of their shares in various football clubs, including Hertha BSC, could impact its ongoing employment policy as the company grapples with debt and potential restructuring post-auction.
