According to a report in the Frankfurter Allgemeine Zeitung (FAZ), Bayern Munich is seeking damages from BMW upward of €10-20 million over an alleged “breach of trust” in connection with the negotiations over a massive sponsorship contract that collapsed abruptly in May 2019. The report says that Bayern Munich bosses Karl-Heinz Rummenigge and Uli Hoeness broke off talks with BMW when, according to Bayern, BMW suddenly made an “unfulfillable” demand. The nature of the demand is not known, but other media speculates that it had to do with a withdrawal clause put in place by BMW.

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Audi FC Bayern 830x501

Audi purchased 8.33 percent of Bayern’s shares in 2014 and pays another €30 million per year as the club’s official automobile sponsor. Bayern’s contract with Audi runs until 2025, but Bayern and BMW had been in talks over a major sponsorship deal since at least August 2018. A letter of intent was signed last year between BMW and Bayern.

In March of this year, another report mentioned a total amount to be paid by BMW totaling 800 million euros, which was quickly denied by BMW.

In May, Bayern signed a new deal, not with BMW, but with Audi: the Ingolstadt car-maker would pay €1 billion for twelve years — a base of €60 million with extras totally about €83 million per year.

There is still no word from BMW on the reasons behind the canceled deal or on the alleged damages.