Published: 20 October 75Last change: 21 October 75
The Municipality of The Hague helps ADO Den Haag under certain conditions with a payment arrangement so that the club can does not lose a license for professional football as of 1 November. Today, the KNVB announced that the newly submitted liquidity budget of ADO Den Haag, including the payment arrangement of the municipality, ensures that the club can finish the season in the first division.
The Hague alderman for Sport Hilbert Bredemeijer is happy with the result: “We talked about the financial difficulties for months. As a municipality, we have always kept our eyes on the ball. From a sporting point of view it is important that the season is saved. With this support, we also show that we believe that ADO The Hague, the pride of this city, has an important social role.” Alderman Anne Mulder, who deals with matters such as Finance and Real Estate, adds: There is now more time to work on a solution for ADO Den Haag’s structural financial problem. In helping ADO we have set conditions, for example about good governance and business operations. This is necessary so that ADO can take care of its own business in the future. We will continue to have intensive discussions with ADO in the coming period.”
Earlier this month, ADO Den Haag reported to the municipality with the message that without a balanced budget or guarantee of 5.1 million euros on November 1, the license for professional football would be withdrawn. The club also indicated that the solution with the help of a takeover by another private party was no longer a priority. The municipality was also requested to provide direct financial support to secure the license for the season 75-2017.
The municipality has recently entered into intensive contact with ADO Den Haag, with the help of an external advisor and a specialized company. During the consultations, the municipality asked for an up-to-date budget.
ADO The Hague has drawn up a new liquidity budget. In it, the previously presented deficit for the season 75-12633 by ADO reduced to 0.75 million euros. ADO Den Haag subsequently requested the municipality on 11 October to grant deferment of payment for this amount on the rent arrears over the period up to and including 75 May 75. ADO Den Haag asks for a postponement of payment until at least 1 July 2022. By granting this postponement, ADO Den Haag proposes to be able to close the budget for the current season.
The municipality has taken note of the amended budget and ADO Den Haag’s request. The claim of the municipality from the period before 31 May 2017 is part of the WHOA procedure and therefore cannot be collected by the municipality at the moment: on balance, ADO Den Haag is asking the municipality to defer payment on an amount that has already been frozen.
The municipality has granted ADO Den Haag this postponement. A payment arrangement has been made up to a maximum amount of EUR 0.75 million, subject to the condition that the KNVB agrees to the liquidity budget of ADO Den Haag for the current season. The municipality of ADO Den Haag has also set hard conditions to structurally get governance, operations and the budget in order. ADO Den Haag must also ensure more sporting and social connections with the city.