EV Zug: CHF 12.5 million loss thanks to Corona measures

<h2>As a result of the measures ordered by the authorities against the Corona pandemic, EV Zug expects a drop in sales of 15.5 million for the 2020/21 financial year and a resulting financial loss of around CHF 12.5 million.</h2>

The restrictions due to the Covid-19 pandemic hit the EVZ very hard. After six-figure expenses for the implementation of the stadium protection concept, the authorities have ordered ghost games again after only three games with a maximum of 3,800 spectators. To date, the EVZ has had to play eleven home games without its spectators and fans. The restaurant businesses of the EVZ had to deal with constantly changing regulations for months before they had to close down completely before Christmas. The drop in sales is great in all businesses, especially in the BOSSARD Arena all match revenues are missing. The EVZ event area has come to a complete standstill. In total, the Covid-19 pandemic caused a drop in sales of around 15.5 million Swiss francs.

The EVZ has dealt intensively with this worst-case scenario and has been working consistently since the beginning of November to minimize the damage with measures in all areas. In doing so, the EVZ has assumed that the official requirements will not change during the current season. In this case, the extrapolated cumulative damage from the claims for repayment from sponsorship and advertising contracts, the claims for repayment from season ticket holders, the loss of all sales from individual tickets and the loss of catering and event income amounts to around CHF 12.5 million.

Savings of over 5 million francs
By mid-January, the ECC had already been able to save 5.1 million Swiss francs through various loss management measures. This amount consists of general savings compared to the budget, the salary waiver of all employees in the amount of a minimum of 7.5% to a maximum of 25% of the annual salary, short-time work compensation, waivers agreed in writing by sponsors & business partners, written waivers of reclaims from season ticket holders as well as a partial waiver of rent by the Corona Fund of the City of Zug. "We feel a great solidarity with our company, both from the outside by sponsors, business partners, patrons, fans and spectators as well as from the inside by our employees and officials. Together we have already achieved a lot, but we still have a lot ahead of us," emphasizes CEO Patrick Lengwiler.

Despite these savings, the EVZ still has to cope with a loss of 7.4 million francs in the coming months. A Herculean task, even if fortunately further waivers from sponsors, business partners and season ticket holders have been promised. Towards the end of the qualification period, the EVZ will actively approach season ticket holders with various options for refunds or a financial concession. However, it is aware that it cannot count on this and will have to implement further savings measures in all areas.

Federal funds are applied for
After many months, state aid is finally on the horizon - in the catering industry through the federal and cantonal hardship ordinance, and in top-level sports through A-fonds-perdu contributions from the federal government. The latter are tied to high conditions over the next five years, such as a 20 percent reduction in all salaries above 148,200 Swiss francs. The ECC accepts the political will for this and will apply for this support. At the same time, the ECC is committed to a revision of the given regulation, which would force it not to respect existing contracts and to violate existing law. If this revision does not come about, it will be impossible to claim federal assistance - in this case, the ECC will have to immediately repay the contributions it has received. However, since the federal government has set forfeiture deadlines for the application of the funds, the ECC will, as a precaution, submit the corresponding applications for A-fonds-perdu contributions by the end of January. For the same reason, it has also submitted the application for federal loans on time by mid-December in order to maintain the ability to act at all times.

"We were a very healthy company before the Corona pandemic. We generated our own revenues and have closed with a profit seven times in the last ten years. We got into this predicament through no fault of our own and only because of the orders issued by the authorities as a result of the Corona pandemic. We therefore feel it is no more than right that the state should also provide financial support to the affected companies. However, we will still have to bear the majority of the damage ourselves. The enormous solidarity around our EVZ forms the basis for this, without which it simply would not work. We would like to thank you for this great solidarity," says Patrick Lengwiler.

Difficult weeks and major challenges continue to loom on many fronts in the company. The EVZ is doing everything it can to master these challenges in the best possible way. Patrick Lengwiler: "We have a strong team, a strong environment and therefore also a strong EVZ. We can do it!"