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Marketing and Sponsorship

Bundesliga Side VfL Wolfsburg Faces Uncertain Financial Future In Wake Of VW Scandal

Sports economics expert Simon Chadwick said that ManU's Champions League opponent, Bundesliga side VfL Wolfsburg, is "facing an uncertain financial future because of the scandal engulfing Volkswagen," according to the BBC. Volkswagen could be fined up to £11.8B ($18B) after cheating U.S. emissions tests. Chadwick, professor of sport business strategy and marketing at Coventry University, said, "When you suffer a big financial hit, you have to look for savings. Sponsorship is one of the things that gets hit during times of austerity. It has to have an impact on the club." Wolfsburg "was formed out of a multi-sports club for VW workers in 1945." Chadwick said, "Depending on the size of the financial dent it remains to be seen whether they can sustain the level of expenditure, and therefore the team's performance, that we've seen over recent seasons." Financial trouble at Volkswagen "could lead to problems at several other clubs -- and in other sports." He said, "VW alone sponsors around 18 of the 36 clubs that make up Germany's top two divisions. But we're not just talking about Volkswagen here, we're talking about the Volkswagen Group." Sporting Dir Klaus Allofs "moved to reassure concerned fans." He said, "I can't say anything concrete about the operations at Volkswagen, but in general the signals are clear. As things stand now, nothing will change." Despite Allofs' comments, former Wolfsburg striker Jonathan Akpoborie "is mindful of how damaging it would be if Volkswagen made significant cut-backs in their investment." Akpoborie: "Volkswagen is the backbone of Wolfsburg, it would be a disaster if they separated" (BBC, 9/28).

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