Football financiersMartin Kind, Hannover 96

Contentious and controversial

Martin Kind is a successful entrepreneur. As an investor in the football club Hannover 96, he tends to be contentious and controversial. This regularly puts him in the headlines, most recently in the discussion about the allocation of TV rights licences by the DFL.

Contentious and controversial

Martin Kind will turn 80 at the end of April. While he could have retired by now, the concept of retirement doesn't suit the father of two sons and grandfather. One significant aspect of his life is his role as a hearing aid and optician entrepreneur. Even though the retail activities of Kind GmbH & Co. KG have been handed over to his elder son Alexander through a donation, he still remains involved – which applies to the manufacturing operation Audifon as well.

According to his own statements, Kind does not intervene in the day-to-day operations, but he continues to live within the company. He expresses a strong interest in decisions and remains involved in the flow of information. "I need information and numbers; it's like a blood supply for me", he stated talking to Börsen-Zeitung. He adds that he is someone who enjoys working, taking responsibility, and making decisions – "all with a focus on results and success."

Expanding

It's evident that the future of his company remains a concern for him. He took over the company, initially a hearing aid specialty store with a turnover of 200,000 Deutsche Mark and two employees, from his parents in 1970 after two apprenticeships at Siemens. It has since grown into a retail company present in twelve countries with around 4,000 employees. Since 2016, Kind has also been expanding into the eyewear business. The company is approaching the mid-three-digit million euro mark in revenue. Kind assesses the prospects optimistically, citing increased acceptance of hearing aids. "We are now at a point where we can grow with high-tech products", says Kind. He does not rule out a stock market listing to finance growth, similar to major competitors, but notes that it's not currently on the agenda.

When it comes to his other significant commitment – which remains a constant focus and demands three to four hours of his time daily – such considerations are irrelevant. Hannover 96 does not meet the requirements for a public offering. "We are economically too fragile," Kind remarks. The club has faced financial challenges in recent years, accumulating losses in the second division.

Dispassionate

Kind is unequivocal in stating that the owners would take responsibility for securing the required license to operate in professional leagues. Since 1997, the entrepreneur has been, with a brief interruption, the key figure in the club. He mentions that, beforehand, he wouldn't have naturally considered becoming a member of Hannover 96. Kind emphasizes that he is not a "passionate football fan." However, upon being approached by authorities, he was willing to take on responsibilities to solve problems. During that period, German clubs were allowed to separate professional football, as a taxable entity, from the non-profit association into corporate entities. Kind presented a concept for outsourcing the financially troubled third-division club, Hannover 96. The club members approved this with a more than two-thirds majority.

In 1999, the professional football section was outsourced to Hannover 96 GmbH & Co. KGaA. The ownership of the capital currently resides with Hannover 96 Sales & Service GmbH & Co. KG, in which along with drugstore entrepreneur and tennis partner Dirk Roßmann and real estate investor Gregor Baum, the younger son Matthias is actively engaged in. Kind has transferred the majority shares of over 52% to him. The three shareholders have invested approximately 50 million euros together, according to Kind.

Restless

In 2002, Hannover 96 achieved promotion to the first Bundesliga, but tranquility did not follow – a fact underscored not only by over 20 coaching changes in the past 25 years. The entrepreneur has been in a prolonged dispute with the mother club, which is authorized to manage affairs through the (Kind-led) Hannover 96 Management GmbH. Both sides remain intertwined due to the Bundesliga-exclusive 50-plus-1 rule, ensuring the registered club's majority vote. The purpose of this rule is to thwart takeovers by external investors, as is a model for example in England.

Exceptions exist with Bayer 04 Leverkusen, VfL Wolfsburg, and TSG 1899 Hoffenheim. Kind, who laments a three-class system in German professional football, persistently fights for the abolition of the rule and, in doing so, has caused considerable controversy with the active fan base in Hannover. He describes the 50-plus-1 rule as "legally more than questionable" and criticizes the Federal Cartel Office, whose role is to establish competition equality, for allowing exceptions for three Bundesliga clubs in this rule. A legal challenge against the 50-plus-1 rule could possibly be submitted to the European Court of Justice.

Antagonized

In December, with the precise two-thirds majority required, the 36 clubs in the first and second Bundesliga approved negotiations with financial investors for the sale of a minority stake in license revenues from TV rights. Kind characterizes this as the successful overcoming of a substantial obstacle. "That is to be respected." With reference to the secret ballot, he leaves it open whether he voted in favor of opening negotiations, contrary to a previous instruction from the Hannover 96.

Kind adds that criticism from the mother club or hostility from parts of the fans must be endured. Otherwise, one should refrain from taking on the role of a managing director in professional football. "I am resilient and capable of dealing with conflicts", he asserts. Kind thinks in terms of business and without emotion. "If I am convinced of something, I stand by my assessment."