The German Football Association (DFB) has been found guilty in a tax evasion scandal
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DFB ordered to pay €130,000 for tax evasionCourt finds "no doubt" DFB evaded €2.7m in taxesVerdict damages DFB's hopes for a €22m tax refundFollow GOAL on WhatsApp! 🟢📱WHAT HAPPENED?
On the final day of the "Summer Fairytale" trail, the Frankfurt Regional Court found the DFB guilty of tax evasion related to the 2006 World Cup scandal. Presiding judge Eva-Marie Distler announced the verdict, stating the DFB evaded approximately €2.7 million in taxes. The court aligned with the prosecution's view of a high degree of criminal intent. The DFB has been ordered to pay €130,000, although a €20,000 waiver was granted due to the lengthy proceedings. The DFB must also cover the costs of the trial.
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The DFB had maintained its innocence throughout the trial, arguing no tax evasion occurred and that tax authorities even benefited from an interest advantage. This conviction significantly impacts the DFB's ongoing lawsuit at the Kassel Financial Administrative Court, where they are seeking a €22m (£19m/$25m) tax refund. This larger sum was paid by the DFB in 2017 after its non-profit status for 2006 was retroactively revoked due to the World Cup scandal. The court's description of the DFB's investigation into the affair as a "catastrophic image" further adds to the association's woes.
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The case centered on a €6.7m DFB payment to FIFA in 2005. This sum was then forwarded to Robert Louis-Dreyfus, repaying a 2002 loan to Franz Beckenbauer. The DFB disguised this repayment as a World Cup opening gala contribution, later declaring it a business expense when the Gala was cancelled.
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This verdict severely impacts the DFB's financial outlook and reputation. Their chances for the €22m (£18.75m/$25.51m) tax refund are now significantly reduced. The DFB leadership faces pressure to address the findings and restore public trust.