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| Bayern Munich left rudderless by Uli Hoeness's tax evasion disgrace | Bayern Munich left rudderless by Uli Hoeness's tax evasion disgrace |
| (about 2 hours later) | |
| The game for "Ulrich H" is not quite over. The official court documents and orientation signs for the trial observers in Munich's Justizpalast court house had persisted with the charade of granting anonymity to the accused until the very end. But in the immediate aftermath on Thursday afternoon of Rupert Heindl sentencing the Bayern Munich president to three years and six months in prison, it became clear that an end to this, the most spectacular tax evasion case in the history of the Federal Republic, was still a few months away. | The game for "Ulrich H" is not quite over. The official court documents and orientation signs for the trial observers in Munich's Justizpalast court house had persisted with the charade of granting anonymity to the accused until the very end. But in the immediate aftermath on Thursday afternoon of Rupert Heindl sentencing the Bayern Munich president to three years and six months in prison, it became clear that an end to this, the most spectacular tax evasion case in the history of the Federal Republic, was still a few months away. |
| Uli Hoeness's defence lawyer Hanns Feigen announced that he would appeal against the verdict. The federal court (BGH) will have to decide the matter in a few months. The key issue is whether Hoeness's voluntary disclosure of his tax evasion to the authorities in January 2013 was indeed voluntary and sufficient enough to preclude criminal sanctions. Heindl didn't think so. | Uli Hoeness's defence lawyer Hanns Feigen announced that he would appeal against the verdict. The federal court (BGH) will have to decide the matter in a few months. The key issue is whether Hoeness's voluntary disclosure of his tax evasion to the authorities in January 2013 was indeed voluntary and sufficient enough to preclude criminal sanctions. Heindl didn't think so. |
| The bank account statements and transaction details provided by Hoeness did not make for a valid disclosure, said the judge. The sheer scale of the 62-year-old's tax evasion – Hoeness had failed to pay €28.5m in taxes on interest and capital gains from a secret Swiss account – made a jail sentence appropriate, explained Heindl. | The bank account statements and transaction details provided by Hoeness did not make for a valid disclosure, said the judge. The sheer scale of the 62-year-old's tax evasion – Hoeness had failed to pay €28.5m in taxes on interest and capital gains from a secret Swiss account – made a jail sentence appropriate, explained Heindl. |
| The former West Germany international and 1974 World Cup winner will not be jailed until the appeal court has heard the case. Even if Heindl's verdict is upheld, legal experts believe Hoeness is only likely to serve half the sentence. He might even be allowed regular day leave. There's neither a risk of repeat offending nor a one of flight. He's got nowhere to go. | The former West Germany international and 1974 World Cup winner will not be jailed until the appeal court has heard the case. Even if Heindl's verdict is upheld, legal experts believe Hoeness is only likely to serve half the sentence. He might even be allowed regular day leave. There's neither a risk of repeat offending nor a one of flight. He's got nowhere to go. |
| Outside the Justizpalast, a crowd of roughly 500 Bayern supporters received the verdict with incredulity. Their cheers of support had been so loud on Thursday that they had been audible inside room 134, where the case was heard. "I'm in total shock, I can't believe it," one fan told the TV reporters, while another one held up a "Free Uli" banner. | |
| Such an outcome had been on the cards for more than a year but Hoeness's stature in Munich and beyond was such that friend and foe believed he might find a way to get away with it. As the websites of Bayern Munich and Suddeutsche Zeitung (the Munich-based broadsheet) temporarily broke down due to the spike in traffic, and politicians praised the verdict, reactions from within German football predominantly spoke of sadness. | Such an outcome had been on the cards for more than a year but Hoeness's stature in Munich and beyond was such that friend and foe believed he might find a way to get away with it. As the websites of Bayern Munich and Suddeutsche Zeitung (the Munich-based broadsheet) temporarily broke down due to the spike in traffic, and politicians praised the verdict, reactions from within German football predominantly spoke of sadness. |
| "We are surprised about the dimension of this case," said the German FA's president, Wolfgang Niersbach. "I feel so sorry for Uli," said Eintracht Frankfurt's chairman, Heribert Bruchhagen. | "We are surprised about the dimension of this case," said the German FA's president, Wolfgang Niersbach. "I feel so sorry for Uli," said Eintracht Frankfurt's chairman, Heribert Bruchhagen. |
| A majority of Bayern's 223,000 club members probably still want Hoeness to stay in power, even now. First as general manager and then as president, he has established Bayern as Germany's wealthiest and most successful club in his 35 years at the reins. He was awarded standing ovations at a tearful AGM in November. | A majority of Bayern's 223,000 club members probably still want Hoeness to stay in power, even now. First as general manager and then as president, he has established Bayern as Germany's wealthiest and most successful club in his 35 years at the reins. He was awarded standing ovations at a tearful AGM in November. |
| Bayern are often described as one big family, and Hoeness did indeed rule like a patriarch. He brought in former players into key positions and discreetly looked after those who had fallen on hard times, such as Gerd Müller. Germany's most successful striker was suffering from alcoholism before Hoeness employed him as a youth coach. | Bayern are often described as one big family, and Hoeness did indeed rule like a patriarch. He brought in former players into key positions and discreetly looked after those who had fallen on hard times, such as Gerd Müller. Germany's most successful striker was suffering from alcoholism before Hoeness employed him as a youth coach. |
| In the rest of country, where Bayern have plenty of fans but even more detractors, they could scarcely believe their eyes. "Mia san Mia, the club's Bavarian motto, translates as 'We are who we are'," commented Suddeutsche. "In reality, this translates as 'We don't care what you think'." | In the rest of country, where Bayern have plenty of fans but even more detractors, they could scarcely believe their eyes. "Mia san Mia, the club's Bavarian motto, translates as 'We are who we are'," commented Suddeutsche. "In reality, this translates as 'We don't care what you think'." |
| Unfortunately for Hoeness, neither the undying support of Die Roten faithful nor his past deeds will spare him an ignominious end to his presidency. He is "Mr Bayern" and the club are "FC Hoeness", they've become synonymous over the last three decades. Consequently, his fall from grace has damaged the club too much. | Unfortunately for Hoeness, neither the undying support of Die Roten faithful nor his past deeds will spare him an ignominious end to his presidency. He is "Mr Bayern" and the club are "FC Hoeness", they've become synonymous over the last three decades. Consequently, his fall from grace has damaged the club too much. |
| Hoeness's perceived integrity as an independently successful businessman allowed him to take the moral high ground aggressively in many debates; his Bayern were the club who got it right, on and off the pitch. "Unlike some of our foreign competitors, we won't do crazy things," Hoeness used to say. "His role as public admonisher and supposed role model is over," wrote Frankfurter Rundschau. | Hoeness's perceived integrity as an independently successful businessman allowed him to take the moral high ground aggressively in many debates; his Bayern were the club who got it right, on and off the pitch. "Unlike some of our foreign competitors, we won't do crazy things," Hoeness used to say. "His role as public admonisher and supposed role model is over," wrote Frankfurter Rundschau. |
| The club's board met in an emergency meeting on Thursday afternoon. An official statement is not expected before Friday. The league leaders have had plenty of time to prepare for this day but the truth is no plan had been in place to deal with this eventuality. No one, not even the captains of industry from Bayern's minority shareholders (Adidas, Allianz, Audi) were prepared to ask for his resignation before the verdict was in. | The club's board met in an emergency meeting on Thursday afternoon. An official statement is not expected before Friday. The league leaders have had plenty of time to prepare for this day but the truth is no plan had been in place to deal with this eventuality. No one, not even the captains of industry from Bayern's minority shareholders (Adidas, Allianz, Audi) were prepared to ask for his resignation before the verdict was in. |
| Whether Hoeness ultimately escapes jail or not will not make a difference any more, however. The eye-watering sums involved have made his position untenable. Hoeness placed huge leveraged bets with his Swiss bank; at times, the court heard he was investing more than €150m illicitly. The fact that he has since lost most of his fortune again didn't reduce his tax burden but has in all likelihood destroyed his credibility even more. | |
| Hoeness, a man who had cultivated the image as a careful, considered operator has been revealed as a compulsive gambler. He gambled on the markets, and he gambled on a tax agreement between Germany and Switzerland coming into force. It would have allowed for an anonymous tax payment and freedom from prosecution but Germany's Bundesrat (federal council) stopped the bill in 2012. Hoeness lost these bets. But the loss is not just his. | Hoeness, a man who had cultivated the image as a careful, considered operator has been revealed as a compulsive gambler. He gambled on the markets, and he gambled on a tax agreement between Germany and Switzerland coming into force. It would have allowed for an anonymous tax payment and freedom from prosecution but Germany's Bundesrat (federal council) stopped the bill in 2012. Hoeness lost these bets. But the loss is not just his. |
| There is no obvious heir in place to assume the mantle and the club are wary of a future without their leader. A Bayern without his bloody-mindedness, his business connections, his good judgment in football matters and his human touch behind the scenes are impossible to fathom. The game is over for him. But for the European champions, you sense, it's only just beginning anew. | There is no obvious heir in place to assume the mantle and the club are wary of a future without their leader. A Bayern without his bloody-mindedness, his business connections, his good judgment in football matters and his human touch behind the scenes are impossible to fathom. The game is over for him. But for the European champions, you sense, it's only just beginning anew. |
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