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Reading: Debate Sparked in Germany over Borussia Dortmund’s Agreement with Arms Manufacturer Rheinmetall
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The Dahlonega Journal - Dahlonega News, Business & Local Events > Blog > Business > Debate Sparked in Germany over Borussia Dortmund’s Agreement with Arms Manufacturer Rheinmetall
Business

Debate Sparked in Germany over Borussia Dortmund’s Agreement with Arms Manufacturer Rheinmetall

The Dahlonega Journal
Last updated: 1 June 2024 09:35
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Contents
Borussia Dortmund Sparks Controversy with New Sponsorship Deal with German Defence ManufacturerThe Contentious Three Year Partnership with RheinmetallThe Voices of Dortmund’s FansThe Geopolitical BackdropThe Impact on Borussia Dortmund

Borussia Dortmund Sparks Controversy with New Sponsorship Deal with German Defence Manufacturer

Borussia Dortmund, one of the most renowned football clubs in Germany that prides itself on maintaining its industrial Ruhr region roots, working-class values, and anti-establishment spirit, has found itself at the heart of controversy. Fans are expressing their discontent over its latest sponsorship deal with Rheinmetall, a leading defence manufacturer from Germany. This unexpected partnership, which is causing a stir among club officials and politicians, has triggered a conversation surrounding the military’s presence in German society. Despite the ongoing debate, many fans are striving to stay focused on the upcoming Champions League final on Saturday where Borussia Dortmund will face Real Madrid.

The Contentious Three Year Partnership with Rheinmetall

The three-year collaboration deal with Rheinmetall, formally announced on Wednesday, grants Rheinmetall advertising and marketing rights in Dortmund’s stadium and club area. However, the deal falls short of allowing Rheinmetall’s logo to feature on the club’s iconic black and yellow uniforms. Both parties have yet to disclose the financial aspects of the agreement.

Much of this controversy stems from the historical reluctance of Germans, who were brought up on the concept of “never again” bringing about armed conflict, to associate with defence industries. Unlike the United States where displays of patriotism and military associations are incorporated into professional and college sports, such demonstrations are uncommon in Germany.

The Voices of Dortmund’s Fans

Many Borussia Dortmund fans, who treasure the club’s dedication to tolerance and social projects, find the association with a weapons manufacturer perplexing. Inge Fahle, a retired teacher and longtime club fan, finds the sponsorship incompatible with the club’s brand.

However, Hans-Joachim Watzke, Dortmund’s CEO, regards this partnership as a step towards constructive dialogue with a defence corporation. He believes this mirrors Rheinmetall’s increasing societal role in Germany, particularly in the wake of Germany’s robust support for Ukraine against Russia. “Security and defence are foundational aspects of our democracy,” Watzke said.

The Geopolitical Backdrop

The sponsorship has also been defended by Germany’s economy minister, Robert Habeck, noting its alignment with Europe’s current geopolitical context. Rheinmetall has seen a significant increase in business, driven by the full-scale invasion of Ukraine by Russia. Rheinmetall’s shares have experienced a surge, multiplying sixfold over the past three years due to the company’s crucial role in manufacturing the Leopard tanks provided by Germany and other NATO partners to Ukraine.

The Impact on Borussia Dortmund

The lucrative nature of the Champions League has led to financial growth for Borussia Dortmund as well. It now anticipates net profit of up to €50 million, which is essentially double of what they initially predicted at the start of the season. Aside from financial benefits, Dortmund’s sporting director, Sebastian Kehl, primarily focuses on the anticipated game on Saturday.

German soccer fans’ influence is noteworthy, as they have previously staged protests against decisions seen as excessively commercial or conflicting with the cultural integrity of the sport. An instance from earlier this year saw the league halting negotiations with a private equity firm over an investment deal that would have generated $1 billion for the teams in exchange for part of the broadcasting profits.

An interesting perspective comes from Anna Neumann, a local politician who sympathizes with Dortmund. She pointed out that several Premier League teams are sponsored by gambling firms and companies associated with nations criticized for human rights violations in Germany. “Rheinmetall supports Ukrainians in defending freedom and self-determination,” Ms. Neumann said. “Several people I have spoken to don’t see it as a bad deal, nor think the debate around it is significant.”

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