15.06.2020 15:43 h

Bankrupt Kaiserslautern expect to survive, despite insolvency

Four-time German champions Kaiserslautern announced Monday they have filed for insolvency, but the third division club is expected to survive under new rules adopted by the German FA this season due to the coronavirus pandemic.

Kaiserslautern last won the Bundesliga title in 1997-98, but they were relegated from the top-flight in 2011-12 and dropped to the third tier last season after finishing bottom of the second division.

The club has debts of 20 million euros ($22 million) and does not have the 15 million euros it needs for the coming season, which must still be found through investors.

However despite going into administration Kaiserslautern, who are in mid-table in the third tier, will not be docked league points, as would usually be the case, under rules modified for this season which the DFB announced in April.

It could help avoid relegation as they are seven points from the bottom three with six games left.

By restructuring their finances, managing director Oliver Vogt said the club will continue to operate as a business and plan for next season.

"The goal of the proceedings is to quickly restore economic performance," said Voigt in a press conference on Monday.

The cost of saving Kaiserslautern will fall to taxpayers with Germany's Federal Employment Agency covering the players' salaries, up to a maximum of 6,900 euros per employee per month for the next three months.

Germany became the first top European football nation to restart its leagues after the COVID-19 pandemic when the top two tiers resumed in mid-May behind closed doors.

The third division restarted two weeks ago and Kaiserslautern have won three of their five games since the resumption.

Soon after league football ground to a halt in mid-March, magazine Kicker claimed 13 of the 36 clubs in Germany's top two tiers were in danger of bankruptcy due to the loss of revenue.