German football giants Bayern Munich are reportedly on the verge of completing negotiations with BMW that will see it replace the German car manufacturer counterpart Audi as the club’s official car partner.
Audi’s sponsorship deal with the Bundesliga champions club will not expire until 2025. However, reports suggest that BMW has persuaded the club president Uli Hoeness to replace its German rival and is also willing to pay a higher annual fee and purchase Audi’s stake in the club as part of the deal.
BMW, it is believed, would buy out Audi’s 8.33 per cent stake in Bayern Munich which it acquired for $105.3 million (€90m) in 2011. On top of that, BMW is willing to pay more than the $35 million (€30m) per annum that Audi currently contributes as part of its sponsorship deal.
Meanwhile, Audi had apparently approached Bayern with a €60 million deal in order to extend their contract with the club by a further five years, although Bayern’s board is supposedly in favour of switching to BMW, who are based in Bavaria – where Bayern are also situated.
Some reports suggest that Bayern Munich wants to sever its ties with Audi because of its parent company Volkswagen which remains tarnished by its 2015 emissions scandal. However, dropping the deal with Audi might not come without complications and legal battles.
Audi can refuse to end its association with Bayern until the end of its current contract. This may result in the club losing out on revenues estimated above €200 million for the next seven years.
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