Categories: Sports

Corona repayment could break CHF 780,000 in the budget

It is currently being reviewed whether the claims for crown funds were legitimate. In the worst case scenario, FC St. Gallen would have to pay back nearly CHF 800,000 to the federal government.

The federal government is demanding the return of crown funds that were paid out in 2021. This is about four million francs, which went to various football clubs. FC St. Gallen is also one of the affected clubs.

According to their own statements, the club received 780,000 Swiss francs from the federal stabilization package. This is after the club applied in accordance with the information given at the time. “FC St. Gallen has the right to ensure that all payments received meet the requirements,” the club said in a statement on its website.

Direct implications for youth and women’s football

The legality of the claim is currently being examined by the Federal Office of Sports and Swiss Olympic. “The club has submitted all the documents and is now waiting for the results of the examination,” the message says. When asked by FM1Today, FC St. Gallen could not say how long the test would take.

If St. Gallen had to return the money, it would have a “direct effect” on youth and women’s football. But as a club as a whole, the payments will not threaten the existence of the club. “Professional activities and, therefore, the main team are not affected,” the club emphasizes.

During the pandemic, professional clubs raised funds from two different sources. On the one hand, a stabilization package designed for both popular sports and youth and women’s football. On the other hand, professional sports clubs received loans and contributions to A-fonds-perdu.

The federal government talks about “misappropriation”

Fonds-perdu means “lost capital” in French. This is the name of the contributions in which the state from the very beginning waives the obligation to repay.

Last year it became known that Swiss professional football clubs were illegally receiving funds from the federal government during the coronavirus pandemic. According to the “CH Media” newspapers, some clubs allegedly illegally used money from the stabilization package for professional sports. In the usual mode, mass sports are funded by income from professional sports.

Now the federal government is accusing the clubs of “misappropriation.” The total is supposed to be ten million Swiss francs. The federal government is waiving the six million francs that went to clubs from the stabilization package in 2020. Due to the hectic times and the unmanageable situation, there was a lot of uncertainty.

As long as contributions from 2020 do not exceed coronavirus-related losses, clubs are allowed to keep the funds.

Source: FM 1 Today

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