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Marketing and Sponsorship

Hertha Berlin To Lose Out On $5.3M Annually As DB Decides To End Shirt Sponsorship

Bundesliga side Hertha Berlin shirt sponsor Deutsche Bahn "has decided to end its nine-year deal with the club in the summer," according to Marcel Reich of HANDELSBLATT. As a result the club will lose out on income of €4.5M ($5.3M) annually. The relationship between the former federal-owned company and Hertha "has suffered numerous setbacks." Back in '06, "when the DB logo first appeared on Hertha's shirts," the company paid €7M per year. In '09, Deutsche Bahn transferred €7.5M to Hertha's accounts along with a bonus payment of €500,000 for qualifying for an int'l competition. However, Hertha's on-field struggles "coincided with a reduction in payments from DB." The sponsor "went through two relegations with the club" and still paid €3M annually. The payments increased to €4.5M per year after the club "returned to the top flight several years ago." Despite ending its shirt sponsorship deal, Deutsche Bahn "will remain an 'exclusive partner' of Hertha," which includes a financial commitment of €1M ($1.2M) annually. In addition, the DB logo "will remain on ad boards during home games at the Olympic Stadium" (HANDELSBLATT, 1/14).

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